China's trade surplus declined by $2,426 million from June to $23,294 million in July, but it was still the third highest on record. Exports were up by $6,894 million but imports rose by $9,320 million. Data on the trade balance, exports and imports are shown in the first chart.

China's balance of trade with Japan continues to show surplus, while that with Europe and the United States show large deficits. There has been some decline in the deficits with the U.S. and Europe since February of this year, but the declines have been small. The second chart shows the balance of trade with Japan, the U.S. and Europe.

The July data on China's exports to the U. S. are probably too soon to reflect any impact of the spate of recalls and questions about the quality of some of its exports, notably frozen fish, tooth paste, toys and blankets. As the third chart shows, July exports of toys to the U. S. were up and exports of frozen fish were flat.