"China's story proves that though structural reform is difficult, it is rewarding. The leadership is unswerving in its resolve to press ahead with reforms".
- Xin Ming, Communist Party of China Central Committee
China released stronger-than-expected trade data for the August as imports unexpectedly advanced for the first time in almost two years while the stabile slump in exports became flat. According to the Reuters data, exports in the world's second-largest economy dropped 2.8% on a yearly basis following July's 4.4% decrease and outperforming Reuters expectations for a 4% slip. Imports, in turn, unexpectedly added 1.5% on-year, reversing a 12.5% fall in July and coming in better than Reuters' estimated 4.9% fall. It is worth to point out that August's rise was the first on-year incerese in imports in dollar-denominated terms since October 2014. Moreover, the following data may be revealing a lag-effect.
In the meantime, the property market in Chine is nearly 8% of the Chinese economy from a gross domestic product (GDP) perspective, has been growing but that has not translated to a sustained improvement in imports. Eventually, China's appetitive for goods and services greatly influences the world wide trade flows so greater import demand can help reinvigorate global exports.
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