Import, export growth cools

Numbers may be blip, or signal slowdown

China’s exports and imports grew much less than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back years of massive stimulus support.

China’s export growth slowed to 7.2 percent in July from a year earlier, the weakest pace since February and cooling from an 11.3 percent rise in June, data released by the General Administration of Customs showed on Tuesday. Analysts had expected a 10.9 percent gain.

China’s imports rose 11.0 percent, the slowest growth since December and down from a 17.2 percent rise in the previous month.

That also missed expectations of 16.6 percent growth.

Some analysts chalked up the softer readings to seasonal or one- off factors, but others said weaker import growth could be the first tangible sign of a long- expected slowdown in the world’s second- largest economy after a surprisingly strong first half.

“External demand is not really worrying in terms of the outlook,” said Raymond Yeung, chief economist for Greater China at ANZ in Hong Kong.

“But we have to be cautious about the import outlook,” said Yeung, while noting that bad weather may have been a factor.

Despite some slowdown in trade growth momentum in July, strong expansion in Chinese exports and imports is still predicted for the rest of the year, experts said.

China’s foreign trade volume reached $ 2.25 trillion in the first seven months, an increase of 12.3 per- cent year- on- year, customs statistics showed on Tuesday.

In particular, foreign trade with the EU, the US, Japan and the Association of Southeast Asian Nations ( ASEAN) increased.

In the first seven months, foreign trade with the EU totaled $ 340 billion, up 11.2 percent year- on- year, accounting for 15.1 percent of the total volume, the customs data showed Tuesday.

In the same period, foreign trade with the US reached $ 317.6 billion, a rise of 14.3 percent year- on- year, while foreign trade with ASEAN increased to $ 277 billion by 14.5 percent yearly. In particular, foreign trade with Japan reached $ 166.9 billion, up 10.8 percent yearly, according to the customs data.