Another so-so monthly trade report from China – this time for the month of July.
Nothing much outstanding – another solid rise in exports and imports and a small dip in the size of the surplus.
But China, like the US, parts of Europe, Australia and the rest of Asia (Thailand and Indonesia especially) is battling new (but small in number) infections of the Delta variant of Covid, as well as weather problems and the shortage of computer chips and shipping containers.
In fact, while China’s trade surplus of $US56.58 billion in July was above market forecasts of $US51.54 billion, it was around 8% lower than the surplus of $US60.5 billion in the same month a year earlier and 10% above the $US51.53 billion reported in June.
It was however the largest trade surplus since January.
Exports rose 19.3% from a year earlier to $US282.66 billion while imports rose 28.1% to $US226.08 billion, thanks to higher oil prices in particular.
Over the first seven months of the year, the trade surplus widened sharply to $US306.12 billion, from $US285.27 billion in the same period of 2020, as exports surged 35.2% year-on-year to $US1.80 trillion, while imports jumped 34.9% to $US1.50 trillion.
The country’s trade surplus with the US rose by around 10% to $US35.40 billion in July from $US32.58 billion in June while over the seven months to July it grew 20% to $US200.32 billion from $US164.92.
Chinese exports to the 27-nation European Union fell 16.2% over a year ago to $US43.3 billion, while imports of European goods sank 15.8% to $US25.9 billion. China’s trade surplus with the EU contracted by 17.1% to $US17.4 billion.
The National Customs Agency said imports of refined products rose 31.9%, natural gas (27.1%), copper ores & concentrates (5.1%), steel products (649.03%), and coal (169.74%).
In contrast, imports fell for crude oil (-19.6%), unwrought copper (-44.3%), iron ore (-12.06%), soybeans (-14.1%), edible oil (-13.6%), rubber (-22.5%), and meat (-15%).
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Outbreaks of Covid Delta cases in eastern and southern Chinese provinces – the country’s main export hubs – continue to grow and Chinese media reports suggest the infections and lockdowns have crimped factory output.
New infections in July, mainly caused by the Delta strain has spread to tens of Chinese cities, prompting local authorities to lock down affected communities, order millions to be tested and temporarily suspend operations of some businesses, including factories.
The restrictions in and around the capital, Beijing are reported to be especially tough.
According to the China Daily, Jiangsu province reported 53 new locally transmitted cases on Friday. Among the cases, one was found in Nanjing and 52 were detected in Yangzhou.
Since July 28, Yangzhou has reported 272 local cases, including 17 in serious condition and another four in critical condition.
The paper also reported that six local officials of an airline, the local health commission and government had been punished for failures in Covid prevention and controls.
Seasonal floods and bad weather last month also affected industrial production in some areas such as central China.
As well China Daily also reported that Zhengzhou, capital of Henan province (which bore the brunt of the flooding in July), on Friday upgraded Covid control measures after a recent resurgence of COVID-19 infections broke out in a local hospital.
Residents in the city’s medium- and high-risk areas for COVID-19 should be quarantined at home, and people in control areas should not leave their community compounds, according to a notice from the city’s epidemic prevention and control leading group.
Aside from the Delta variant and the floods, Chinese exporters also struggled with an ongoing global semiconductor shortage, logistics bottlenecks, and higher raw material and freight costs.
