China posted stronger-than-expected June trade figures on Thursday, bolstered by firm global demand for Chinese goods and robust appetite for construction materials at home. David Pollard reports.
Exports up 11 per cent, imports 17. China's trade numbers for the last year are weighing in at the top end of the scale - and are above analyst forecasts. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "They certainly fill you with a lot of confidence. I think it's been a good start to the year for China the first half. We've seen growth at around six point nine percent so we are already exceeding expectations. The fact that this looks to be carrying on has to be seen as a positive." These June numbers lifted by firm demand for Chinese goods abroad. And a robust appetite for construction materials at home. But - local curbs on lending could weigh on imports later this year. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "We are still seeing a move to transition in the economy. I think we are going to see signs of that in the second half which is going to lead to lower growth I think we are going to see less spending on infrastructure because ultimately the Chinese economy needs to become more self-sustaining less reliant on these infrastructure projects." Another possible hitch: a growing surplus that may add to tensions with export partners - especially the US. Who may also look at China's increase in trade with North Korea as undesirable on the political front.