Import growth lowest in 20 months

Zhao Fudi, GAC spokesman, said in an online broadcast on Sunday that higher prices are increasing inflationary pressure, leading to a 14.7 percent gain in the overall price of imported commodities in the first half.

Imports surged 27.6 percent year-on-year to $829.4 billion from January to June, as commodity prices rose during the first half. Exports increased 17.9 percent in June, down from 19.4 percent in May.

"This is because of weaker external demand" from developed nations, Wang said.

Exports increased 24 percent, year-on-year, to $874.3 billion during the first half, but exports to both the United States and the European Union, China´s two major trading partners, rose by only 16.9 percent.

"The slow recovery of the global economy and the European debt crisis have added uncertainties to export growth," Zheng Yuesheng, head of the GAC statistics department, said.

Lu Zhengwei, chief economist at Industrial Bank, believes that the March earthquake and tsunami in Japan hurt China´s exports.

"The disaster cut off China´s imports of parts and components used for mechanical and electrical goods, leading to a decline in those exports" which make up a majority of China´s exports, Lu said.

As Japanese manufacturers resume full production, or come close to it, in September, China´s exports will regain momentum, he predicted.

Li Wei agreed. "China´s exports keep pace with the global economic recovery. And growth will probably see a turnaround in September" when orders for the Christmas season are usually made, Li said.

Many companies in China´s coastal regions are far from optimistic, citing rising costs in labor and raw materials and yuan appreciation, as well as shrinking demand abroad.

Han Jie, deputy director general of the department of commerce in Zhejiang province, said "exporters in Zhejiang have experienced a disappointing first half, and the second half will not be better".