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China’s exports rise in July, trade surplus hits record high

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BEIJING (AP) — China’s export growth continued to rise in July and its trade surplus hit a record high, according to government data.

Chinese exports rose 18% year-on-year to $333 billion, up from 17.9% in June, according to data from China Customs.

However, imports remained weak, rising 2.3% year-on-year in July. That was below economists’ estimates of 4%, suggesting weak domestic demand as China tries to stem the outbreak of COVID-19 due to a nationwide lockdown.

China’s total trade surplus hit a record high of $101.3 billion in July, breaking the previous record set in June.

The country’s economy has rebounded from earlier this year, when draconian COVID-19 restrictions including a two-month lockdown in Shanghai and other measures across China disrupted manufacturing and logistics.

Despite easing manufacturing and supply chain issues, recovery could be hampered by external uncertainties such as new COVID-19 outbreaks, weak domestic demand and rising inflation in developed countries including the UK and US

The International Monetary Fund forecast in July that China’s economy would grow 3.3 percent this year, below the 5.5 percent target set by the ruling Communist Party in April.

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