China's Exports Bounce Back, But Global Risks Darken Trade Outlook

• 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 economy.
• The rebound in exports reflected an easing of supply chain disruptions and port congestion that hammered the world's second-largest economy in spring when the government rolled out widespread lockdowns.
• Outbound shipments in June rose 17.9% from a year earlier, the fastest growth since January, official customs data showed on Wednesday, compared with a 16.9% gain in May and much more than analysts' expectations for a 12.0% 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.
• 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.

(Source: Reuters)