China's trade growth revving up

China's exports and imports have both improved in June due to the pick-up in global demand. Both are expected to remain resilient in July. Exports are expected to have expanded strongly by 10.9% mom in July, following the modest increase (1%) in June. 

"However, a negative base effect probably will drag the yoy growth rate down to 0% from 2.8%. Imports are expected to have made another strong gain of 10.4% mom in July after the exceedingly buoyant expansion in June", says Societe Generale. 

Needless to say, the increase in imports is likely to have been driven by exports as a result of the fragmented value-chain production in the region.