Credited from: SCMP
China's export growth in August slowed significantly, marking a six-month low with a year-on-year increase of only 4.4%. This number is down from a 7.2% increase in July and falls short of forecasts, raising concerns among officials about the resilience of the economy under ongoing trade tensions, particularly with the United States, according to SCMP, Channel News Asia, and Reuters.
Shipments to the U.S., the largest single-country market, fell sharply by 33.1% year-on-year, highlighting the adverse effects of tariffs imposed by President Donald Trump. Meanwhile, exports to other regions, including the European Union and Southeast Asia, showed positive growth, rising 10.4% and 22.5% respectively, according to India Times and CBS News.
China's trade surplus expanded to $102.3 billion in August, though this is coupled with a gradual decline in imports, which rose by only 1.3%. Analysts attribute these trends to weak domestic demand and the strategic shift of exporters seeking alternative markets in response to U.S. tariff risks, as highlighted by Reuters and SCMP.
Despite recent challenges, officials are hopeful that Chinese manufacturers can diversify their export destinations and soften the blow of U.S. tariffs. However, economists warn that high tariffs on Chinese goods, once they exceed 35%, could severely impact export levels, as indicated by Channel News Asia and India Times.