China's July exports up but import growth weakens

China's exports grew strongly in July but import growth fell as the country's rapid economic expansion cooled, possibly hurting global demand.

Exports rose 38.1 percent over a year ago to $145.5 billion while imports gained 22.7 percent to $116.8 billion, the National Bureau of Statistics said Tuesday. Export growth was above June's 35.2 percent rate but the rise in imports was down sharply from June's stunning 53 percent expansion.

Weakness in China's demand for imports could dent its ability to help to drive a global recovery amid Europe's debt crisis and slack sales elsewhere.

China's voracious appetite for imports has eased as Beijing clamped down on a boom in bank lending and construction. Economic growth slowed from the first quarter's 11.9 percent to 10.3 percent in the second quarter.

Global commodity prices have fallen as surging Chinese demand eased. Mining and other companies that have enjoyed a windfall from China's boom warn their explosive sales growth will slow.

Import growth was slower than expected, reflecting slowing Chinese investment and lower commodity prices, analysts said.

"The drop in imports might affect those countries that supply China with raw materials," said economist Xing Ziqiang of China International Capital Corp.

Import weakness boosted China's monthly trade surplus to $28.7 billion - its highest level since January 2009. That could help to reignite complaints about Chinese currency controls and demands for Beijing to allow its yuan to rise in value.

Other indicators also show Chinese demand weakening. An industry group reported Monday that auto sales in China, the biggest market by number of vehicles sold, fell 11.9 percent in July from the previous month to 1.2 million units.

China's export growth has remained strong despite uncertainty about the health of the global economy. But analysts expect demand for Chinese goods to drop as Europe's debt crisis hurts spending by the continent's consumers.

"Although the global economy is limping, the export data told us the Western world's economy is still quite stable," said economist Hu Xiaoyue of Shanghai Securities.