China exports in USD was +7.6%YoY & imports was 16.3% (base effect very favorable - will talk about details detail on what drove the upward movement).
Notice that Chinese equity prices went DOWN after the massive upside surprise trade figures.
Notice that Chinese equity prices went DOWN after the massive upside surprise trade figures.
After rallying on trade-deal rumours, here are the facts:
* USD/CNY since trade-war peak (-4.2%) to 6.87, not good for China as needs to export deflationary impulses
* Commitment by China to purchase USD200bn of goods (75bn for manu + 50energy + 40agri + 35 to 40bn of services)
* USD/CNY since trade-war peak (-4.2%) to 6.87, not good for China as needs to export deflationary impulses
* Commitment by China to purchase USD200bn of goods (75bn for manu + 50energy + 40agri + 35 to 40bn of services)
Basically FX (removal of manipulation in exchange for a weaker USD) +commitment of purchases (a lot more than what China had imported from the US prior to trade-war so a lot of creative accounting here or taking from elsewhere) = seen as negative for China exporting PPI deflation
