China’s exports gained momentum in June as firms accelerated orders while a temporary trade truce with the U.S. continued. Shipments to Southeast Asia were particularly noteworthy.
In the run-up to new tariffs expected to take effect next month, Chinese manufacturers are trying to maintain their market share and strengthen their positions in nearby markets despite challenging conditions in the U.S. In June, China’s exports rose 5.8% year-on-year, exceeding expectations. Imports also increased by 1.1%, recovering after the decline in May.
In the run-up to the U.S., exports rose 32.4% month-on-month, making June the first month to fully see the effects of tariff easing.
However, year-on-year growth is still negative. China’s foreign trade surplus also rose to $114.7 billion.
Experts warn that this increase in exports may be temporary. New tariffs exceeding 35% seriously threaten producers’ profitability. Furthermore, the US imposition of a 40% additional tax on shipments via Vietnam could make it more difficult to transport Chinese goods through alternative routes.
On the other hand, China’s soybean imports from Brazil reached a record high; the amount imported from the US remained quite low. Imports of crude oil and iron ore also showed a strong increase in June.
However, if a lasting trade agreement with the US cannot be reached by August 12, global supply chains may once again face significant uncertainty.
Then, if a lasting trade agreement with the US cannot be reached by August 12, global supply chains may face significant uncertainty again.
Then, if a lasting trade agreement with the US cannot be reached by August 12, global supply chains may once again face significant uncertainty …
