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The General Administration of Customs shows China's foreign trade growth slowed in July. Analysts say the slower pace is due to the falling demand both at home and internationally.
In the first 7 months, China's foreign trade totalled 1.6 trillion US dollars, 40 percent more than the same period last year. The trade surplus contracted 21 percent, as growth in imports outpaced exports during the period.
In July, export growth slowed 5.8 percent compared to a month earlier. It was in line with an expected slowdown in economic growth in the United States and European Union. But officials are optimistic.
Huang Guohua, Official of General Admin. of Customs said "The growth in exports dropped a little, but is still above the global trade average, and its volume reached a historical high."
The official says the slowdown in imports was also expected, as a result of domestic macro-controls.
Huang Guohua said "The import figure is in line with our expectations. It's due to the macro-controls imposed by the government. The domestic economic growth cooled. Another factor is falling commodity prices, it also lead to the fall in the import figure."
But analysts are worried weakness in China's demand for imports could dent its ability to help drive a global recovery, amid Europe's debt crisis and slack sales elsewhere.