China’s exports growth unexpectedly accelerated in July despite fresh U.S. tariffs, though a still-wide trade surplus with the United States looks set to keep Beijing and Washington locked in a bitter dispute that has rattled financial markets.
Imports also rose much faster in July driven by still solid domestic demand, official data showed on Wednesday.
The headline numbers are the first readings of the overall trade picture for the world’s second-largest economy since U.S. duties on $34 billion of Chinese imports came into effect on July 6.
China’s closely watched surplus with the United States dipped only slightly to $28.09 billion last month from a record $28.97 billion in June. Washington has long criticized China’s trade surplus with the United States and has demanded Beijing cut it. Still, disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over market access, intellectual property, technology transfer and investment.