China trade balance grows in August as exports beat expectations
2024.09.09 23:39
Investing.com– China’s trade balance grew more than expected in August as the country’s export industries shrugged off pressure from trade restrictions imposed by the U.S. and its allies.
But imports grew at a much slower than expected pace, raising concerns over slowing local demand.
rose to a surplus of $91.02 billion in August, government data showed on Tuesday. The reading was higher than expectations for a surplus of $82.10 billion and also improved from the $84.65 billion surplus seen in July.
grew 8.7% year-on-year, higher than expectations for growth of 6.5% and accelerating from the 7% rise seen in July.
Growth in exports comes even after the U.S., Canada and the European Union imposed steep import tariffs on several major Chinese industries, especially the electric vehicle sector.
The restrictions were imposed amid concerns over increased competition and dumping practices from Chinese companies. U.S. lawmakers recently pushed forward a bill proposing more restrictions on Chinese companies- this time on the biotechnology sector.
Increased trade restrictions present more headwinds for China’s export industries, which are otherwise a main driver of the country’s massive trade surplus. This raised some doubts over just how long China’s stellar export growth can be sustained.
Still, China’s overall trade surplus was also aided by a substantially smaller-than-expected increase in . Imports grew 0.5% year-on-year, missing expectations of 2% and slowing sharply from the 7.2% seen in July.
The softer import reading raised concerns over slowing local demand in China, especially as the country grapples with weak consumer spending and laggard economic growth.
