China's exports grew much faster than expected in June, as solid global demand led by easing lockdown measures and vaccination drives worldwide eclipsed virus outbreaks and port delays.
But overall trade growth in the world's second-biggest economy may slow in the second half of 2021, a customs official warned today.
This partly reflected Covid-19 pandemic uncertainties as the Delta virus variant wreaks havoc in some countries.
The overall imports also beat expectations, though the pace of gains eased from May, with the values boosted by high raw material prices, customs data showed today.
Thanks to Beijing's efforts in largely containing the pandemic earlier than its trading partners, the world's biggest exporter has managed a solid economic revival from the coronavirus-induced slump in the first few months of 2020.
Exports in dollar terms rose 32.2% in June from a year earlier, compared with 27.9% growth in May. The analysts polled by Reuters had forecasted a 23.1% increase.
China's trade performance has seen some pressure in recent months, mainly due to a global semiconductor shortage, logistics bottlenecks, higher raw material and freight costs.
All the same, the global easings in Covid-19 lockdown measures and vaccination drives appeared to underpin a strong uptick in worldwide demand for Chinese goods.
Germany, for example, which was at first sluggish in its vaccination drive, said this month it had caught up with the US in terms of the proportion of the population having had one shot of COVID-19 vaccine.
Almost half of Americans are now fully vaccinated, while elsewhere in Europe the rate has also increased recently.
China's strong shipment numbers last month underlined some solid factory surveys overseas. A measure of US factory activity climbed to a record high in June, while euro zone business growth accelerated at its fastest pace in 15 years.
The data also showed imports increased 36.7% year-on-year last month, beating a 30% forecast but slowing from a 51.1% gain in May, which was the highest growth rate in a decade.
China's crude oil imports in the first half fell 3% in the first contraction for the period since 2013, as an import quota shortage and rising global prices curbed buying, but imports of soybeans, natural gas and iron ore rose.
Asian stock markets, partly buffeted over recent weeks by concerns over the spreading Delta virus variant and easing growth rates in China, extended their gains after the trade data and were headed for the best session in more than two weeks.
China's yuan also rose to a near one-week high against the dollar as the data tempered worries over softening GDP growth.
On Friday, the People's Bank of China said it would cut the amount of cash that banks must hold as reserves to support the economy, especially as smaller firms were unable to pass on rising raw material costs.
