Trade has played a key role in China’s remarkable rise over recent decades, supported by its accession to the WTO in 2001. There is no doubt that trade will remain vital for the country’s continued economic development.

Chinese trade surplus increased slightly by 6.4 per cent year-on-year in June 2016. Exports fell 4.8 per cent year-on-year, worse than market expectations of a 4.1 per cent drop. In the last twelve months exports rose only in March. In yuan-denominated terms, exports grew 1.3 per cent year-on-year in June, following a 1.2 per cent rise in May.

Imports shrank 8.4 per cent, following a 0.4 per cent decline in May and market expectations of a 5 per cent drop. It is the 20th straight month of decline, a likely sign of weaker domestic demand and lower growth prospects.

Since 1995, China has been recording consistent trade surpluses which from 2004 to 2009 have increased ten times. In 2015 as a whole, China’s total trade dropped by 8 per cent, as exports shrank 2.8 per cent and imports fell sharply by 14.1 per cent due to a weaker currency and falling commodity prices.

In 2015, the biggest trade surpluses were recorded with Hong Kong, the US, the Netherlands, India, the UK, Vietnam, Singapore and Indonesia. China recorded trade deficits with Taiwan, South Korea, Australia, Germany, Brazil and South Africa.