China’s July trade balance (CNY): Surplus unexpectedly shrinks to 176.96bn as imports jump 20.9%

China's trade balance for July, in Yuan terms, came in at CNY 176.96bn versus CNY 280.9bn expected and CNY 261.90bn last. Exports came at +6.0% y/y vs +6.4% expected and +3.1% last, while imports were +20.9% y/y vs +6.9% expected and +6.0% last.    

Analysts at Barclays expected, “export growth to slow as US-China trade tensions have escalated and the import tariff hike by the US on Chinese goods has come into effect. Import growth is likely to accelerate in year-on-year terms as Chinese importers could have postponed their shipments to July given the tariff cuts on certain imports (such as autos and daily commodities) came into effect on 1 July.”