In August, China’s exports increased for the fifth month in a row, showing strong international demand even though the domestic economy remains weak. According to official figures, exports grew by 8.7% compared to the same month last year, marking the highest rise in 18 months and surpassing what experts had predicted. However, imports only saw a slight increase of 0.5%, which did not meet expectations. Analysts believe the export growth was partly due to a low starting point from August 2023, when exports had dropped by 8.8%. To address the slow economy, Chinese officials have boosted investments in manufacturing to encourage growth.

Export volumes reached new records, with favorable exchange rates playing a role in this increase. Although imports fell in August, they are expected to improve in the coming months because of rising global demand and increased government spending. The Association of Southeast Asian Nations (ASEAN) remains China’s largest trading partner, and exports to ASEAN, the United States, and the European Union have all grown. China’s trade surplus expanded to $91.02 billion in August. Despite strong export figures, domestic challenges persist, with weak consumer spending and a modest 0.6% rise in the consumer price index due to higher food prices from bad weather. Additionally, industrial activity showed signs of decline, with the Purchasing Managers’ Index falling below 50, indicating reduced manufacturing output.