CHINA’S exports surged in July on the back of strong demand from the United States, Europe and Southeast Asia, while imports fell, surprising markets on both counts and resulting in a record monthly trade surplus.

    The news was largely welcome in Beijing, as the world’s second-largest economy struggles to regain growth and foreign trade momentum after this year’s weak start, although negative import growth underscores continued weak domestic demand.

    According to figures released by the General Administration of Customs on Friday, exports expanded 14.5 percent year on year, nearly double the 8 percent growth forecast by 15 economists and a sharp increase from the 7.2 percent year on year increase recorded in June.

    Imports, meanwhile, fell 1.6 percent during the same period, following a 5.5 percent year-on-year expansion in June.

    China’s trade surplus widened to US$47.3 billion in July from US$31.6 billion in June, well above the US$27.7 billion economists projected. The country’s previous monthly trade surplus record was US$40.09 billion in November 2008.

    Analysts said the large surplus could intensify calls by U.S. export groups to let the Chinese currency appreciate.

    Strong exports, fueled by double-digit growth to the United States, Europe, Southeast Asia and Hong Kong, dovetailed with similar strong export growth for Taiwan and South Korea, as those economies order more Chinese mainland components for use in their own export industries, analysts said.

    Exports also have been bolstered by a yuan that has depreciated 1.7 percent against the U.S. dollar this year. After the data were announced Friday, the yuan rose to 6.1579 against the dollar from 6.1619 at Thursday’s close.

    China’s gradually improving economic picture should lead to further upward pressure on the currency, analysts said.

    Weak imports reflected slower domestic growth, tepid investment and a troubled real estate market, which has reduced imports of building materials and commodities, economists said. A recent crackdown on commodity-financing irregularities is also a factor, they added.

    Trade figures are often volatile, however, and analysts said they expect imports to grow by around 5 percent in coming months given that many export products depend on imported materials.

    The strong export numbers should bolster economic growth, which expanded at its slowest pace in 18 months during the first quarter. Helped by improving exports and targeted domestic spending on public housing, transport and energy, economic growth edged up to 7.5 percent year on year in the second quarter, matching the government’s annual growth target.

    (SD-Agencies)