China’s exports rose by 8.7% year-on-year in August, surpassing the forecasted growth rate of 6.5% in US dollar terms, according to data from the customs agency.
This robust growth outperformed expectations and indicates continued strength in China’s export sector despite broader economic challenges.
Imports increase by 0.5%
In contrast to the export performance, China’s imports grew by just 0.5% year-on-year in August. This was below the anticipated 2% increase, as per a Reuters poll.
July had seen stronger import growth of 7.2%, which was more than expected.
Exports to major trading partners show varied performance
China’s exports saw growth across its major trading partners. Shipments to the European Union (EU) experienced the most significant increase, rising by 13% from the previous year.
Exports to the United States and the Association of Southeast Asian Nations (ASEAN) also rose, reflecting robust demand in these regions.
Conversely, imports showed mixed results. Imports from the US rose by 12% in August, while those from the EU declined. Imports from ASEAN increased by 5%.
Imports from Russia saw a minor decrease of 1%, even as exports to Russia grew by 10%.
Also read: Japanese chip equipment firms rely on China sales amid US export curbs
Core CPI rises by 0.3%
Official data released on Monday revealed that China’s core consumer price index (CPI), which excludes volatile food and energy prices, rose by 0.3% year-on-year in August.
This represents the slowest increase since March 2021, according to Wind Information. The subdued CPI growth underscores ongoing economic pressures and a sluggish domestic demand environment.
Export strength amid rising trade tensions
The rise in China’s exports comes as the country faces increasing trade tensions with the US and the EU. These tensions have led to additional tariffs on Chinese products, including electric cars.
Despite these challenges, the export sector remains a bright spot in China’s economy, which is otherwise struggling with weak domestic consumption and other economic headwinds.
China’s reliance on exports highlights the ongoing adjustments the country is making in response to global economic shifts and internal challenges.
As the global trade landscape continues to evolve, the ability to sustain and grow exports will be crucial for China’s economic stability.
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