China’s exports grow by 8.7 per cent in August, beating expectations

China’s exports rose by 8.7 per cent year-on-year in US dollar terms in August, according to the customs agency.

That was higher than the forecast for growth of 6.5 per cent year-on-year in US dollar terms, according to a Reuters poll.

Imports grew by 0.5 per cent. That was less than the expected 2 per cent increase from a year ago in US dollar terms, the poll showed. In July, exports rose by 7 per cent from a year ago, while imports increased by a more-than-expected 7.2 per cent.

China’s exports to its major trading partners — the US, European Union and Association of Southeast Asian Nations — all rose in August from a year ago. Exports to the EU grew the most, up by 13 per cent, according to CNBC calculations of official data.

China’s imports from the US rose by 12 per cent in August from a year ago, while imports from the EU fell, the data analysis showed. Imports from ASEAN rose by 5 per cent.

China’s imports from Russia fell by one per cent, while exports rose by 10 per cent, the data analysis showed.

China’s exports of cars rose by nearly 40 per cent in August to 610,000 vehicles. Exports of ship vessels rose by 40 per cent, while the number of smartphones exported climbed by 6.7 per cent. Suitcase exports rose by nearly 9 per cent.

The value of integrated circuits exported rose by 18 per cent, while imports increased by 11 per cent.

Rare earths trade drops

The volume of China’s rare earths exports fell by one per cent in August from a year ago, while imports declined by 12 per cent.

The country in June announced a new policy to increase its oversight of the domestic rare earths industry out of national security concerns. In August, the Ministry of Commerce surprised some in the critical minerals industry with export controls on antimony that are set to take effect later in September.

China’s imports of crude oil fell 7 per cent in volume in August.

In terms of Chinese yuan, year-to-date exports rose by 6.9 per cent, while imports were up by 4.7 per cent.

China’s exports have been a bright spot in an economy otherwise struggling to boost domestic demand.

The core consumer price index, which strips out the more volatile food and energy prices, rose by 0.3 per cent in August from a year ago, official data released Monday showed. That was the slowest since March 2021, according to Wind Information.

China’s growing reliance on exports also comes as trade tensions increase with the US and European Union, leading to added tariffs on Chinese electric cars and other products.

CNBC