MNI BRIEF: China H1 Exports Slow, Int'l Trade Challenging

China's exports registered a 3.2% y/y fall in H1, led by sliding demands from external economies as well as the high base effect, while imports fell 6.8% y/y, data released by China Customs on Thursday showed.

Trade showed strong resilience in H1, especially as domestic production recovered rapidly after the pandemic, but global economic uncertainty still pressures trade stability and quality improvement, a customs spokesperson said.

June's exports decreased by 12.4% y/y, dipping further from last month's 7.5% y/y drop, and weaker than the 10.8% y/y consensus, marking the third monthly fall. Exports in the first half of 2023 totaled USD1.66 trillion. ASEAN countries - accounting for 15.2% of total exports - increased by 1.5% over the first six months while those to the EU decreased 6.6% and 17.9% y/y to the US.

Imports decreased 6.8% y/y in June, dipping further from 4.5% y/y drop noted last month and weaker than the market consensus of a 4.2% y/y drop. Imports in the first six months amounted to USD1.25 trillion. The trade surplus over the January-June period was USD408.69 billion, with June contributing USD70.62 billion.