China sees solid export growth, but weak imports dampen trade outlook

Posted on September 16, 2024   |  

China’s exports rose 8.7% year-on-year in August, the fastest growth in almost 1.5 years, as manufacturers rushed to meet orders before expected tariffs.

Imports increased by just 0.5%, missing the 2% forecast and down from 7.2% growth in July.

The Chinese economy remains sluggish due to a prolonged property downturn, with recent surveys showing low export growth and the lowest factory prices in 14 months.

Exports to the European Union grew by 13.4% in August, the highest among major markets, while exports to Southeast Asia increased by 8.8%.

Exports to the U.S. rose 4.9% year-on-year in August, but imports from the U.S. grew 12.2%, widening China’s trade surplus with the U.S. to $33.81 billion.

The U.S. has criticized this surplus as showing an imbalanced trade relationship.

Canada has imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum.

Lower import levels could impact future exports, especially since many imports are parts for re-export, particularly in electronics. 

Iron ore imports also fell 4.73% due to weak demand in construction.