Daily Times

China’s exports rose at the fastest pace in five months in June as factories revved up after the lifting of COVID lockdowns, but a sharp slowdown in imports, fresh virus flare-ups and a darkening global outlook pointed to a bumpy road ahead for the .

Analysts say the rebound in exports reflected an easing of supply chain disruptions and port congestion that hammered the world’s second-largest in spring when the government rolled out widespread lockdowns.

Outbound shipments in June rose 17.9pc from a year earlier, the fastest growth since January, official customs data showed on Wednesday, compared with a 16.9pc gain in May and much more than analysts’ expectations for a 12.0pc rise. “This jump reflects the easing of supply chain disruptions coming out of lockdowns and, most importantly, fewer bottlenecks at ports,” said Julian Evans-Pritchard, senior China economist at Capital Economics.

“Although total container throughput at Chinese ports was little changed last month, the recent weakness of domestic shipping demand has freed up more port capacity for foreign trade,” he said.

Daily container throughput in June at Shanghai port, which had been severely affected by a lockdown, had recovered to at least 95pc of year-earlier levels, according to official data.

Exports of computers, steel products and autos contributed to the robust growth. China exported 248,000 vehicles in June, up 30.5pc from a year earlier.

However, economists say the strength in exports is likely to fade as rising global interest rates to rein in inflation begin to sap demand and broader economic growth.

The threat of further pandemic restrictions at home also hangs over Chinese businesses and households, while the Ukraine war has put renewed pressure on world supply chains and raised exporters’ operating costs.