China June import export trade up 5.2% year on year in yuan terms: Wang

China June import export trade up 5.2% year on year in yuan terms: Wang

China's trade dynamics in June showed a notable increase in export and import volumes, reflecting a recovery in domestic demand and continued uncertainty in international trade relations. According to the latest Reuters poll, China's exports in June were expected to grow by 5.0% year-on-year (YoY) in value terms, up from a 4.8% increase in May [1]. This growth was driven by exporters rushing to front-load shipments, fearing the potential unraveling of the fragile trade truce with the United States.

Imports, on the other hand, grew by 1.3% in June, reversing a 3.4% slump in May. This rebound was attributed to the recovery of domestic demand, bolstered by policy support introduced late last year. The trade truce with the U.S., reached in May, was nearly derailed due to accusations of stalling on rare earth exports. However, tensions eased in June after discussions in London, where both sides agreed to revive the truce [1].

The trade relations between China and the U.S. remain a significant factor influencing global trade dynamics. The U.S. president has threatened new tariffs on trans-shipments from third countries through Vietnam and BRICS countries, which could potentially hit Chinese manufacturers. Additionally, disputes with the European Union over market access and overcapacity have added to the uncertainty [1].

The rare earth sector, a critical component of China's export strategy, also saw significant growth in the first half of 2025. China Northern Rare Earth's H1 performance is expected to surge by 1,882.54% to 2,014.71% YoY, boosting rare earth permanent magnet stocks. The rare earth permanent magnet index rose by 2.04% on July 10 [2]. This growth is attributed to persistently high spot rare earth prices and optimistic market expectations for the sector.

The Ministry of Commerce has been actively reviewing export license applications for rare earth-related products, legally approving a certain number of compliant applications. China is willing to further enhance export control dialogues and communications with relevant countries to promote convenient and compliant trade [2].

In conclusion, China's trade performance in June reflects a recovery in domestic demand and continued uncertainty in international trade relations. The rare earth sector's growth indicates a resilient market despite global trade tensions. Investors and financial professionals should closely monitor these developments for potential impacts on China's economic growth and global trade dynamics.

References:
[1] https://ca.finance.yahoo.com/news/chinas-export-growth-expected-edge-044219939.html
[2] https://news.metal.com/newscontent/103420420/China-Northern-Rare-Earths-H1-performance-soars-%22igniting%22-rare-earth-permanent-magnet-concept-stocks-China-Northern-Rare-Earth-and-Jingyuntong-hit-daily-limit-up-[SMM-News]