China’s Exports Surge; Imports Falter Amid Weak Domestic Demand
China: China’s exports surged in August, growing 8.7% year-on-year, the fastest pace since March 2023, surpassing the 6.5% increase forecast by economists. However, imports disappointed, rising only 0.5%, well below the expected 2% increase, highlighting weak domestic demand. Zhou Maohua, a macroeconomic researcher at China Everbright Bank, stated, "The strong export performance and trade surplus is favourable to economic growth in the third quarter and whole year," but also cautioned that China's exports face significant headwinds due to a complex global economic and geopolitical environment. Beijing is grappling with mounting trade barriers, as the European Union, Canada, India, Indonesia, and Malaysia impose or consider tariffs on Chinese products. Despite these challenges, analysts like Zichun Huang of Capital Economics believe China's exporters will weather the storm, benefiting from a weaker yuan and re-routing goods to avoid tariffs.
Source: Gazette