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China's exports rose 7.2% yoy in July as a result of demand for medical care

China's dollar-exports rose 7.2%, while imports fell 1.4%. A year ago, data from the country's General Customs Administration was displayed on Friday.

Economists surveyed by Reuters had expected China's US dollar exports to fall 0.2% year over year, while imports were expected to grow 1% year over year.

In June, China's US dollar exports rose 0.5% year over year and imports rose 2.7% over the same period.

In July, China had a trade surplus of $ 62.33 billion, exceeding the $ 42 billion economists had expected. China's trade surplus was $ 46.42 billion in June.

Despite the corona virus pandemic that hit global demand, exports from China have held up as exports to medical care increased in the first half of the year.

The trend continued until July, stated Martin Rasmussen, China economist at Capital Economics.

"Much of the recent resilience of exports is due to the shipping of masks, medical devices, and home appliances," Rasmussen wrote in a note after the data was released.

Rasmussen said China's stimulating recovery would continue in the coming months – and this would support a recovery in imports.

Foreign demand should continue to recover due to disruptions related to the pandemic. However, the upward trend in China's exports could be limited as the demand for products related to the pandemic is likely to be temporary, he added.

The ongoing trade tensions between the United States and China also pose a downside risk.

Senior US and Chinese officials are reportedly expected to review the implementation of their Phase 1 trade agreement next week.

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