China's foreign trade surges by 1.2%

It raised doubts whether the world's second-largest economy would meet this year's target of 7.5 %

China's foreign trade grew just 1.2 % to USD 2.02 trillion in the first half of the year, raising doubts whether the world's second-largest economy would meet this year's target of 7.5 %.

The trade surplus narrowed to USD 32 billion in June after export growth slowed and imports grew at a slow pace.

Exports in June increased 7.2 % year on year to USD 186.8 billion, below market expectations for a 10.6 % increase.

Imports also missed forecasts, rising by 5.5 % USD 155.2 billion due to sluggish demand.

Total foreign trade volume increased 6.4 % to USD 342 billion, the General Administration of Customs (GAC) of China said.

The combined foreign trade volume in the first half of this year saw a year-on-year growth of 1.2 % to USD 2.02 trillion, the data showed.

China set a trade growth target of 7.5 % this year, lower than the 8 percent goal for 2013 and last year's actual expansion of 7.6 %.

Economists say unless more stimulus measures are taken China will find it difficult to achieve its annual growth target of 7.5 % this year.

"Together with weak inflation data, we think the domestic demand remains weak," Wang Jun from the China Centre for International Economic Exchanges in Beijing was quoted by BBC as saying.

"For the economy to rebound in the second half of this year, we believe more policy support is necessary due to the unsteady recovery base," Wang said.

Latest figures of inflation showed that price pressures have diminished amid lower food prices.

Consumer prices rose by 2.3 % in June from a year ago, which was an improvement from May's increase of 2.5 %.

China's exports in June increased 7.2 % year on year to USD 186.8 billion, as the country's foreign trade continued its warming trend, customs data showed today.

GAC spokesman Zheng Yuesheng attributed the improving export and import figures to rising demand due to global economic recovery and pro-trade measures from the Chinese central government, which together gradually reversed the weak performance in the first quarter.

Weighed down by shrinking external demand, China's total foreign trade was disappointing in the January-March period, with exports down 3.4 %, adding to concerns over the country's economic strength.

China's trade with major partners also gathered steam.

During the first half, trade with the European Union saw the largest year-on-year growth of 9.6 %, accounting for 14.4 % of China's total foreign trade.

Its trade with the United States increased by 2.8 % in the same period, followed by 2.6 % with the ASEAN and 1.3 % with Japan, state-run Xinhua news agency reported.