China's exports increase for fourth month in row, economic stimulus remains elusive

(MENAFN) China's exports have shown growth for the fourth consecutive month, reflecting a 7 percent increase in dollar-denominated overseas shipments for July compared to the same month last year. Imports also grew by 7.2 percent, leading to a substantial trade surplus of USD84.65 billion for the month, according to data released by the General Administration of Customs on Wednesday. Despite this positive export performance, it falls short of economists' expectations, who had predicted a 9.5 percent rise in exports and a 3.2 percent increase in imports. The annual growth rates are partly attributed to a lower comparison base from 2023 and additional working days this year.

However, this rebound in exports is unlikely to significantly boost China's economy, which is grappling with weak domestic spending. The world's second-largest economy is struggling with a disappointing start to the third quarter due to persistent issues such as weak domestic demand and a prolonged downturn in the property sector, which are overshadowing the positive effects of increased exports. Additionally, the growing trade surplus has led to heightened concerns among China’s trading partners, prompting fears of protectionist measures and tariffs in response to the surplus.

China's trade dynamics may face further challenges as tensions with Europe and the United States rise over the country's growing overseas sales. The official manufacturing purchasing managers' index (PMI) for China indicates a continued contraction in new export orders for the third consecutive month in July, suggesting that the boost from exports may not be sufficient to offset the broader economic difficulties. 

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