China reports $63 billion trade surplus in July
10 August 2020
China recorded a trade surplus of $63.46 billion (442 billion yuan) in July 2020 amidst trade constraints in the wake of the global corona virus crisis, preliminary data released by the General Administration of Customs of the People’s Republic of China showed.
Total trade surplus for the first seven months of the year stood at $234 billion (1,631.15 billion yuan).
China's total trade (exports and imports) in July 2020 stood at $420.08 billion (2,927 billion yuan), up 8.5 per cent from the previous month and 6.5 per cent higher compared to the same month last year.
After seasonal adjustment, the total trade in July was up 5.8 per cent year-on-year, with exports up 9.3 per cent and imports up 1.4 per cent, respectively.
Total trade volume for the first seven months of the year ended 31 July 2020 stood at $2,463.47 billion (17,164.95 billion yuan), showing a 1.7 per cent decline year-on-year.
China’s exports rose 11.3 per cent month-on-month and 10.4 per cent year-on-year in July to $241.78 bn (1,684.64 billion yuan) due mainly to coronavirus-induced demand for medical supplies.
Exports during January-July 2020 were down 0.9 per cent at $1,348.78 bn.
China imported goods and services valued at $178.31 bn (1,242.40 billion yuan) in July 2020, which showed a 4.9 per cent increase from the previous month and a 1.6 per cent increase year-on-year.
Imports during the first seven months ended July 2020 were down 2.6 per cent at $1,114.69 bn (77,66.90 billion yuan).
Despite the coronavirus pandemic hitting global demand, exports from China have held up as exports in medical supplies jumped in the first half of the year.
The trend may reverse once the corona virus crisis eases and global production and supplies improve.
China’s ongoing trade tensions with the United States as well as other countries also pose a downside risk.
China’s domestic demand has been dragged down by the pandemic, making it hard for the country to stick to import obligations under US trade deal, which could only worsen the trade scenario for China.