General

According to a report from the Associated Press in Beijing on August 7, due to global efforts to control the delta mutant strain burdened business and consumer spending, China's imports and exports in July grew at a double-digit rate, but the growth rate slowed. The delta mutant strain is a more contagious variant of the new coronavirus.

According to customs data on the 7th, exports in July increased by 19.3% year-on-year to 282.7 billion U.S. dollars, a slowdown from June. Imports increased by 28.1%, reaching 226.1 billion U.S. dollars, a slowdown from June.

According to reports, compared with the beginning of 2020, trade growth this year has expanded. At the beginning of 2020, as the governments of China and other countries closed factories and stores to fight the epidemic, global demand plummeted.

Forecasting agencies have warned that with the reopening of the entertainment and other service industries, consumer spending returns to normal, and Chinese competitors that have been hampered by epidemic prevention measures return to the global export market, and trade growth will stabilize. This situation has been disrupted because more and more governments have re-implemented business closures and other control measures to curb the delta strain, thereby prolonging the rapid growth of Chinese merchandise exports.

According to reports, US President Biden, who took office in January this year, has not yet indicated whether he will cancel the punitive tariffs imposed by his predecessor Trump on Chinese imports. The representatives of the two parties had a conversation via video, but the date of the negotiation has not yet been announced.

The report pointed out that China has led the global recovery since the new crown pneumonia pandemic, but domestic consumer spending and other activities were weaker than expected. The global flow of industrial components such as processor chips may be disrupted.

According to a report from Reuters on August 7 in Beijing, the latest official data showed that as of the end of July, China’s foreign exchange reserves amounted to 3235.89 billion U.S. dollars, an increase of 21.88 billion U.S. dollars from the previous month, or 0.68%.

State Administration of Foreign Exchange spokesperson Wang Chunying said in response to reporters: “Foreign exchange reserves are denominated in U.S. dollars. The amount of non- U.S. currencies converted into U.S. dollars will increase. Together with asset price changes and other factors, the scale of foreign exchange reserves increased during the month.”

She also pointed out that the current global new crown pneumonia epidemic is still evolving, and the international economic and financial situation is uncertain and unstable. However, China's economy continues to recover steadily, stabilizes and improves, and high-quality development has achieved new results, which will contribute to the scale of foreign exchange reserves. Overall stability provides support.