Some weeks ago, we raised the question on whether China’s trade data is overstating external demand. To be more precise, although China‘s exports to EU as per Chinese data is not expected to match Europe‘s import from China as per Eurostat, we should expect the trends to stay broadly the same. However, it appears to us that the growth of China’s exports to EU has been flat, while Europe‘s import from China has been falling for an alarming rate.
The latest trade data both from the EU and China continue to show such discrepancies as we suspect China is actively massaging data. On a year-on-year basis, EU imports from China fell by 9% in May, while China exports to EU rose by 3% in US dollar terms.
Source: China Customs, Eurostat
This article originally appeared here: China’s export growth to EU continued to look overstated
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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