Devaluation Helps RMB Exports Again

China's trade surplus climbed 34 percent yoy as exports climbed 2.9 percent and imports fell 5.7 percent (figures all in RMB). Customs: 今年前7个月我国进出口总值13.21万亿元 Both numbers are negative in USD.

Trade partners with whom China has declining exports and imports YTD: Australia, USA, Canada, South Africa, Singapore, Malaysia, Taiwan, South Korea.
A rise in both imports and exports YTD: New Zealand, EU, Hong Kong.

Some are calling the trade surplus as "better than expected." That is not the right term to use since imports tumbled, even if its partially due to falling commodity prices. The only bright spot is an uptick in exports, but that is also a negative in the sense of stalling China's rebalancing.

Reuters: China's July exports, imports fall more than expected
That resulted in a trade surplus of $52.31 billion in July, versus a $47.6 billion forecast and June's $48.11 billion.

There is some lag in falling commodity prices, such as oil which is still down significantly yoy. Import volume is is up 12 percent this year, but the total value is down 21 percent.

Volume of refined oil exports climbed 46.8 percent in USD through July, but down 3 percent in total value. Coal exports climbed 78 percent by volume and 31 percent by value.

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