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China posts a trade surplus as growth slows in Q2
Even with June exports and imports rising year over year, GDP growth cooled to 4.3% and domestic demand indicators lagged, underscoring reliance on overseas sales.
China’s June trade and second-quarter growth figures looked strong on their own, but together they point to an economy where production is finding buyers abroad while domestic demand remains too weak to absorb output, according to CryptoSlate.
The outlet cited official data showing GDP grew 4.3% year over year in the second quarter, down from 5.0% in the first quarter and below expectations of 4.5%. On a quarter-over-quarter basis, growth was 0.9%.
China reported a monthly trade surplus of $125.6 billion, while June imports and exports rose 24.2% year over year, with exports up 20.8% and imports up 29.4%. Over the first half of the year, total imports and exports reached 25.47 trillion yuan, up 16.9%, and exports rose 13.4%, led by mechanical and electrical shipments.
CryptoSlate also highlighted softer domestic activity in the same official releases, including fixed-asset investment down 5.7% in the first half, retail sales up just 1.3%, private investment down 8.5%, and real-estate development investment down 18%. It said exports may keep factories running and bring foreign earnings, but they cannot, by themselves, restore confidence and spending across the broader economy.