BEIJING – China’s export growth picked up pace in August, remaining a key driver for an economy that is still grappling with tepid domestic demand and external uncertainties.
China’s exports expanded 25 per cent year-on-year in August in US dollar terms, matching forecast and accelerating from the 23.9 per cent growth in the previous month, customs data showed on Sept 8.
Imports soared 28.2 per cent, compared with a 27.5 per cent year-on-year increase in July and a forecast for a 30 per cent rise.
The boom in exports, supported by global demand for Chinese-made cars, semiconductor and other high-tech goods, contrasts with the weaknesses in domestic consumption, investment and the property market.
The dichotomy highlights Beijing’s reliance on external demand to achieve its annual growth target of 4.5 per cent to 5 per cent.
After growth cooled to 4.3 per cent in the April-to-June period, economic data released in August showed industrial output and retail sales both slowed at the start of the third quarter, while fixed-asset investment recorded a sharper decline in the first seven months.
The property market, once a major growth driver, is still in a years-long downturn.
While the AI boom lifted the profits of advanced manufacturers, industries relying on the domestic market have been grappling with producer price inflation and soft demand.
Premier Li Qiang, the country’s No. 2 leader, in August called for efforts to stabilise external demand and expand international trade cooperation while acknowledging insufficient domestic demand, hardships facing industries and companies as well as rising uncertainties in international environment.
The government has stepped up fiscal support for the economy, including deploying an 800 billion yuan (S$151 billion) financing tool to shore up infrastructure investment.
But the strength in exports relieves Beijing of immediate large-scale actions to boost household income, improve job security and revive the property market to effectively elevate domestic consumption.
Relying on outbound shipments to absorb industrial capacity also exposes China to risks of curbs from trading partners, as the United States and the European Union have both demanded Beijing lower its trade surpluses.
China’s trade surplus came in at US$119.09 billion (S$150.86 billion) in August, expanding from US$112.5 billion the previous month.
A trade truce between Beijing and Washington, reached in late 2025 when the two countries’ presidents met, has held despite on-and-off frictions.
The two governments are now exploring reciprocal tariff cuts on US$30 billion worth of goods from each side as they prepare for another summit later in September. REUTERS
