UPDATE: MNI: 'Phase-1' On Track Despite Slower Imports: China

--Amends data on textile exports in para 7

     BEIJING (MNI) - China is honouring its Phase One trade agreement inked with

the U.S. even as its imports declined in H1 due to the pandemic, Li Kuiwen, a

spokesman for the General Administration of Customs, said at a briefing Tuesday.

     China is keeping promises to expand imports and hopes the two nations stick

to the agreement and overcome any problems, Li said. Even during the depths of

the pandemic, the decline in imports from the U.S. was still less severe than

seen for overall imports, he said. 

     In the first half, Sino-US trade totalled CNY1.6 trillion, down 6.6% from

last year. Exports to the U.S. fell 8.1% to CNY1.25 trillion, while imports fell

1.5% to CNY395.62 billion, with trade surplus down 10.8% to CNY851.74 billion.

The bureau will release data in dollar term later today.

     The reduction in imports from the U.S. is 1.8 percentage points lower than

the rate of decline in China's overall imports, according to Li.

     --BETTER-THAN-EXPECTED REBOUND 

     Supported by strong overseas demand for virus-control equipment, China's

foreign trade recovered better than expected in H1, with June exports growing

4.3% y/y, a third monthly gain, Li said. June imports reversed double-digit

two-month decline to grow 6.2% y/y.

     A rapid resumption of production helped boost imports of electronic

components, crude oil, coal and iron ore, said Li.

     Exports of textile products, including masks, and medicines and medical

equipment grew 32.4%, 23.6% and 46.4% y/y respectively for the first six months,

according to Li. Increased work-from-home demand drove up laptop and cellular

phone exports by 9.1% and 0.2% y/y, Li said.

     Trade with ASEAN nations rose 5.6% y/y in H1, or 14.7% of China's total

trade, making the bloc China's largest trading partner ahead of the EU. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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