CHINA's exports grew at their fastest pace in nearly 1-1/2 years in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a growing number of trade partners, while imports disappointed amid weak domestic demand.
The mixed trade data highlights the challenge facing Beijing as policymakers try to bolster overall growth without becoming too reliant on exports, especially given the tightening of consumers' purse strings, writes Reuters.
China's economy has failed to fire over the past year amid a prolonged property sector downturn, and a survey last week showed exports in the doldrums and factory gate prices at their worst in 14 months, pointing to producers slashing prices to find buyers.
Outbound shipments from the world's second-largest economy grew 8.7 per cent year on year in value last month, the quickest since March 2023, customs data showed on Tuesday, beating a forecast 6.5 per cent increase in a Reuters poll of economists and a 7 per cent rise in July.
But imports increased by just 0.5 per cent, missing expectations for a 2 per cent boost and down from the 7.2 per cent growth a month prior.
Economists have warned that Beijing risks undershooting its growth target if it becomes too reliant on exports, following a series of lacklustre data, raising pressure on policymakers for more stimulus to revive China's economy.
Outbound shipments to the European Union grew 13.4 per cent in August year on year, which represented the biggest increase out of China's major export markets, followed by an 8.8 per cent lift in sales to the Southeast Asian economies.
Chinese exports to the US rose by just an annual 4.9 per cent last month but imports grew 12.2 per cent over the same period, the most of any major import market.
Mounting trade barriers are emerging as another significant obstacle, threatening China's price-driven export momentum.
As China attempts to direct more exports towards Southeast Asia and South Asia, it is also facing pushback there.
India is planning to raise tariffs on Chinese steel, Indonesia is eyeing heavy duties on textile imports, and Malaysia opened anti-dumping investigations into plastic imports from China and Indonesia.
Still, some analysts expect outbound shipments to ride out the storm, given the relative inexpensiveness of China's yuan and the relative ease with which exporters can re-route their wares to avoid tariffs.
SeaNews Turkey
The mixed trade data highlights the challenge facing Beijing as policymakers try to bolster overall growth without becoming too reliant on exports, especially given the tightening of consumers' purse strings, writes Reuters.
China's economy has failed to fire over the past year amid a prolonged property sector downturn, and a survey last week showed exports in the doldrums and factory gate prices at their worst in 14 months, pointing to producers slashing prices to find buyers.
Outbound shipments from the world's second-largest economy grew 8.7 per cent year on year in value last month, the quickest since March 2023, customs data showed on Tuesday, beating a forecast 6.5 per cent increase in a Reuters poll of economists and a 7 per cent rise in July.
But imports increased by just 0.5 per cent, missing expectations for a 2 per cent boost and down from the 7.2 per cent growth a month prior.
Economists have warned that Beijing risks undershooting its growth target if it becomes too reliant on exports, following a series of lacklustre data, raising pressure on policymakers for more stimulus to revive China's economy.
Outbound shipments to the European Union grew 13.4 per cent in August year on year, which represented the biggest increase out of China's major export markets, followed by an 8.8 per cent lift in sales to the Southeast Asian economies.
Chinese exports to the US rose by just an annual 4.9 per cent last month but imports grew 12.2 per cent over the same period, the most of any major import market.
Mounting trade barriers are emerging as another significant obstacle, threatening China's price-driven export momentum.
As China attempts to direct more exports towards Southeast Asia and South Asia, it is also facing pushback there.
India is planning to raise tariffs on Chinese steel, Indonesia is eyeing heavy duties on textile imports, and Malaysia opened anti-dumping investigations into plastic imports from China and Indonesia.
Still, some analysts expect outbound shipments to ride out the storm, given the relative inexpensiveness of China's yuan and the relative ease with which exporters can re-route their wares to avoid tariffs.
SeaNews Turkey
