China: Short-lived trade momentum in July – ANZ

Betty Wang, analyst at ANZ, points out that the two closely watched trade items, soybeans and rare earth exports, widely believed to be used by China as retaliatory tools amid the US-China trade tensions, appeared to have resumed positive momentum in July.

Key Quotes

“Unfortunately, this is unlikely to last, especially in light of the recent trade war re-escalations.”

“Exports rebounded in July, thanks to increased exports to ASEAN and EU markets, offsetting the weakness in China’s exports to the US.”

“The increase in commodity imports supported the overall import figure, while high-tech product imports continued their retreat.”