Mainland Exports Show An Unexpected Rise In June

The mainland's exports unexpectedly rose in June as overseas economies reopened after lockdowns, while imports grew for the first time this year, reinforcing views the recovery from the pandemic is gaining traction in the world's second-largest economy.

Exports in June edged up 0.5% from a year earlier, customs data showed on Tuesday, beating analysts' expectations for a 1.5% drop and compared with 3.3% decline in May.

Imports also rose 2.7%, confounding market expectations for a 10% drop. They had fallen 16.7% the previous month.

"The reopening of major Western economies and elevated overseas demand for PPEs (personal protective equipment) and masks supported Chinese exports in June," said Boyang Xue, a China analyst at Ducker Frontier.

"In addition, production disruptions in China's trade competitors also helped to shift some orders to Chinese exporters."

Mainland's economy is gradually emerging from a sharp 6.8% contraction in the first quarter, but the recovery remains fragile as global demand falters from social curbs and still rising coronavirus cases.

The consumption on the mainland is also subdued amid job losses and concerns about a resurgence in infections.

The country's export performance however has not been as severely affected by the global slowdown as some analysts had feared, though weak overseas orders may weigh on its manufacturers in the coming quarters. (Reuters)