Chinese exports increased unexpectedly in July. China transported 3.3 percent more goods abroad compared to the same month last year, despite rising trade tensions. On the contrary, economists at the Bloomberg news agency assumed a decline in exports.
Exports are rising, despite American import duties on Chinese products. The Americans are currently levying a 25 percent import tariff on 250 billion dollars (223 billion euros) of Chinese goods. This makes it more expensive and therefore less attractive for Americans to get products from China.
The increase in Chinese exports is a good sign for the Chinese government. The global demand for Chinese goods appears to be increasing at a time when the trade war with the US is escalating further. The American president Donald Trump wants to introduce import duties of 10 percent on products of 300 billion dollars from China from September.
The cheaper Chinese yuan may have to do with export growth. The currency has fallen by 4.7 percent against the dollar since May. Trump accuses China of manipulating the currency in order to get a better competitive position.
On Monday, the Chinese central bank had the currency devalued, so that 7 dollars now has to be paid for 1 dollar. The action is seen as a reaction against the new import duties from Trump. Because of the cheaper Chinese currency, it is even more attractive for Americans to get products from China, despite all the American trade rates.