Deutsche Bank analysts note that China’s July trade numbers showed that exports rose surprisingly by +3.3% YoY (vs. -1.0% YoY expected) while imports dropped -5.6% YoY (vs. -9.0% YoY expected) bringing the trade balance to $45.06b (vs. $42.65b expected).

“In terms of trade with the US, exports in July were down -6.5% yoy (YtD -8.2% yoy) while imports came down -19.1% yoy (YtD -28.3%) bringing the July trade balance to c.$28b (-0.41% yoy) and YtD trade balance at $168.3bn (+3.88%). So an expanding trade surplus with the US before the latest trade tensions. Interestingly the trade surplus increased with the EU perhaps suggesting more of their exports being switched there.”