China trade surplus declines in June

Chinese economy growth story for the past twenty years has been all about trade. Its trade surplus, raised huge debates among US politicians who argued that China's exports were so attractive to Americans in particular because they were intentionally underpriced American producers. However, it is worth to point out, that now, China moves away from a trade-based economy, since the nation continues to hold a trade surplus as well as expand trade regime in some important directions. According to the latest data released by General Administration of Customs, in dollar terms, exports dropped 4.8% on a yearly basis in June. Nonetheless, it was slower than the predicted decline of 5%. At the same time, imports went down by 8.4%, which was bigger than the 6.2% plunge expected by economists. In the meantime, the trade surplus slipped to $48.11 billion from $49.98 billion in May. Economists, in turn, had expected the surplus to reach the $45.65 billion.

It is obvious if negative trade trends for 2015 and beginning 2016 are just a gloomy sign on the overall expanding trade agenda, China will remain a manufacturing giant. Moreover, Chinese economy has not, restructured sufficiently toward a consumption-based economy, even though domestic consumption is slowly expanding.