China’s August export growth slowest in 6 months as US tariff risks mount

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Chinas August export growth slowest in 6 months as US.jpeg

By Joe Cash

BEITHING (Reuters) – Export growth in China slowed down to its lowest level in six months in August as a brief support from a tariff truce with the United States fading, but the demand elsewhere has provided officials with some relief because they are trying to support the economy that faces a decrease in home consumption and external risk.

The authorities rely on manufacturers to diversify other markets in the wake of the irregular trade policy of US President Donald Trump, allowing them to reach the goal of the annual growth in Beijing of “about 5 %” without rushing to provide additional financial support in the short term.

Customs data showed on Monday that external charges from China increased by 4.4 % year on year in August. They compared a 7.2 % increase in July.

Imports grew by 1.3 %, after 4.1 % grow a month. Economists have expected 3.0 % increase.

The slowdown in export growth was affected by a high base of comparison, but the character of last August was distorted by hasty manufacturers to overcome the definitions of a number of commercial partners.

“I would like to say that the number is still appropriate, and the elastic exports have certainly continued for a longer period than we expected,” said Shu Tianchion, chief economist in the Economic Intelligence Unit.

He added: “The possibility of a very low financial incentive. China still has a number of economic tools such as bank credit for politics and cash dilution, which may be sufficient to help it reach 5 %.”

Customs data showed, while China’s exports to the United States increased by 33.12 % year year in August.

Chinese producers are trying to export more markets in Asia, Africa and Latin America to make up for the Trump tariff, but there is no other country that approaches the power of US consumption, which accommodated more than $ 400 billion of Chinese goods annually.

With Trump threatening in July 40 % of the tariff penalty for goods that were transferred from China to the United States to evade his previous Viva, the time when Chinese factories can continue to find American buyers in this way.

But policy makers hate the implementation of painful economic reforms, but affect the need for them to capture a solid in local consumption under external pressure, analysts say.

“the [import data] The collapse showed the capacity of energy shipments, but this has been compensated more than declines in the imports of chips and industrial minerals, as the latter is likely to reflect the constant slowdown in construction activity.

The lengthy recession in the real estate sector, which is a major family wealth store, is to press consumer spending. The revenues of the sale of exhausted lands also limit the ability of the local authorities to support the Beijing campaign to revive the demand through subsidies such as job construction plans.

It seems that Beijing is practicing tougher control over its pioneering program “Criticism in exchange for the guards” and has not accelerated the renewal of funds after many local governments recently ran through the allocation allocated to the plan.

But this puts a lot of pressure on the Chinese exporters.

The Chinese trade surplus in August amounted to 102.3 billion dollars, from 98.24 billion dollars in July, but is still less than 114.8 billion June.

Tensions

Beijing and Washington agreed on August 11 to extend the truce of the customs tariff for another 90 days, as it was held in its place to confront the United States by 30 % on Chinese imports and 10 % of Chinese duties on American goods, but it seems struggling to plan a path beyond the current suspension.

Once Trump’s tariff tops 35 %, it becomes prohibited for Chinese exporters.

Soybeans in China rose to the highest level ever for the month of August, as buyers have presented large sizes from South America and continued to stop reserving US soybeans – leaving American exporters at risk of losing billions of dollars in sales while continuing commercial talks.

Iron crude imports remained high, as Mills was prepared for the peak demand period for steel order in September, which policy makers hope to see a victory in the construction activity on the back of a better weather.

But with no end to decline in property on the horizon and slow structural reforms, officials are likely to focus on one favorite option – negotiating a solution in the trade war with the Trump administration with the expansion of the trade fingerprint in China elsewhere.

“The exports are well held so far,” said Dan Wang, director of the China Group at the Eurasia Group.

“The shipments to the United States have decreased, but other roads are better than last year. Many exports are also linked to Chinese factories that are traveling abroad, importing raw materials and other inputs from China,” she added.

(Participated in the reports of Joe Cash; edited by Kim Kojil and Shri Navratnam)

2025-09-08 03:23:00

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