There has been a rise in exports of 7.2% year-on-year to $193.65 billion, the customs manager stated.

Imports were up 11% year-on-year;compared to expected increase of 18 % to $146.9 billion, lifting the trade surplus to $46.74 billion.

Analysts reported that while export and import rates should have been prospered but there was an eviden downfall in the import and export businesses.

“Despite the uptick at the end of (the second quarter), trade growth now appears to be on a downward trend,” said Julian Evans-Pritchard, a China economist at Capital Economics. “In particular, the sharp decline in import growth since the start of the year suggests that domestic demand is softening.” 

The trade figures are positive inclusive of the recent economic data, including better-than-expected second-quarter GDP growth of 6.9 percent.

China is trying  to cease capital flight and risky bank lending, however they are also restricting the property purchases as the country’s debt fuels fears of a stagnant state and financial crisis that could have global repercussions. Market regulators concentrate on reining in “grey rhinos” a term broadly referring to risky financial practices that have long been visible but ignored.

This term in China applies to several large semi-private companies such as Wanda, Anbang, and Fosun that have used debts as a key to expand their companies.

The July import and export data states the passing on Saturday of a UN Security Council Resolution that significantly strengthened sanctions on North Korea by banning its exports of coal, iron, and other key hard-currency earners. China is North Korea’s most important trading partner but has presented an increasingly united front with the US to Pyongyang.

“Although China’s monthly trade surplus increased, trade tensions between the US and China have eased following China’s co-operation with the US for tougher economic sanctions on North Korea,” said Rajiv Biswas, chief economist for IHS Market.

“US-China trade relations are currently being driven by US-China cooperation on trying to bring North Korea back to the Six Party Talks.