China’s Export Growth Slows In August Amid Trade Uncertainty

China’s export growth slowed in August, reflecting ongoing uncertainty over a lasting US-China trade deal. Outbound shipments rose 4.4 per cent year on year to US$321.8 billion, down from 7.2 per cent in July and below the 5.4 per cent forecast by Wind.

Imports rose just 1.3 per cent to US$219.5 billion, signaling weak domestic demand, while the trade surplus widened to US$102.3 billion. Analysts said the earlier boost from front-loading, when goods were shipped ahead of higher tariffs, was fading, but diversification into other markets continued to support exports.

Exports to the US fell 33.1 per cent, yet shipments to Southeast Asia, Europe, Latin America, and Africa remained strong. Exports to ASEAN countries rose 22.5 per cent, including a 31 per cent increase to Vietnam, and European-bound shipments grew 10.4 per cent.

Strong demand persisted for machinery, electrical goods, and high-tech products. Vehicle exports climbed 25.1 per cent year on year, while rare earth shipments fell in volume but rose in value.

China’s chip imports grew slightly by 2.1 per cent but remained below July levels. The US has used semiconductor exports as leverage, recently revoking a waiver for TSMC shipments to China.

The next round of US-China trade talks is expected in November, coinciding with the expiry of the current 90-day truce, as both sides work to implement prior agreements amid lingering trade tensions.