China’s exports grew for the fifth consecutive month in August, signaling stronger demand from international markets despite a sluggish domestic economy. Official data revealed that exports rose by 8.7% compared to the same month last year, exceeding analysts’ expectations. This marked the fastest increase in 18 months. In contrast, imports showed a minimal rise of 0.5%, falling short of forecasts. Economists suggest that the export growth was partially due to a low base from August 2023, when exports declined by 8.8%. To counter the economic slowdown, Chinese leaders have ramped up investments in manufacturing to stimulate growth.

Experts noted that export volumes reached record highs, with favorable exchange rates contributing to this surge. Although import volumes dropped in August, they are expected to recover in the coming months, driven by rising external demand and increased government spending. The Association of Southeast Asian Nations (ASEAN) remains China’s largest trading partner, with exports to ASEAN, the United States, and the European Union experiencing growth. China’s trade surplus widened to $91.02 billion in August. Despite strong export performance, China continues to face domestic challenges, as consumer spending remains weak. The consumer price index (CPI) rose by only 0.6% due to higher food prices caused by adverse weather conditions. Additionally, industrial activity showed signs of contraction, as the Purchasing Managers’ Index (PMI) fell below 50, indicating a decline in manufacturing output.