China says its exports jumped in July, beating forecasts

BEIJING

China's exports expanded 7.2 percent year-on-year in July, official data showed , as the world's second-largest economy navigated a shaky trade war truce with the United States.

The increase in China's overseas shipments last month outpaced a Bloomberg forecast of 5.6 percent.

Imports jumped 4.1 percent year-on-year in July, compared with a Bloomberg forecast of a one percent fall.

Data also showed that China's exports to the United States, its largest trading partner, continued to fall, sinking 6.1 percent from the previous month.

The two economic superpowers agreed in Stockholm last month to hold further on extending their tariff truce.

That deal has temporarily set fresh U.S. duties on Chinese goods at 30 percent, while Beijing's levies on US goods stand at 10 percent.

The accord -- initially agreed in Geneva in May -- brought down triple-digit tariffs each side had imposed on the other after Donald Trump launched his trade war on April 2.

The 90-day truce is set to end on Aug. 12, when the original duties could snap back.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the data showed "exports supported the economy strongly so far this year."

"Export growth may slow in coming months, as the front loading of exports due to U.S. tariffs fades away," he said.

"The big question is how much China's exports will slow and how it would spill over to the rest of the economy," he said.

Beijing has said an official goal of around five percent growth this year.