According to customs data released on Tuesday, China's exports rose 8.7% year-on-year in August, outpacing the forecasted 6.5% increase and surpassing July's 7% growth.
In contrast, imports grew by only 0.5%, falling short of the expected 2% rise and significantly down from the 7.2% growth recorded in July.
While exports remain a crucial driver for China's $19 trillion economy, which is struggling with a prolonged property slump and a sluggish labor market, economists caution that an over-reliance on exports could hinder long-term growth.
Recent data showing continued weakness in domestic sectors have intensified pressure on Beijing to introduce more stimulus measures to revive economic momentum.
August also marked the sixth consecutive month of contraction in China's manufacturing sector, with factory gate prices falling to their lowest point in 14 months. This suggests that manufacturers are cutting prices to attract foreign buyers, which could limit profitability in the long term.
China's export-driven growth faces additional challenges from mounting global trade barriers. Efforts to negotiate with the European Union over tariffs on Chinese electric vehicles (EVs) have stalled, and Canada recently imposed a 100% tariff on Chinese EVs, along with a 25% tariff on Chinese steel and aluminum.
China’s efforts to shift its export focus to Southeast Asia are also encountering resistance. India plans to raise tariffs on Chinese steel, Indonesia is considering heavy duties on Chinese textile imports, and Malaysia has initiated anti-dumping investigations into plastic imports from China and Indonesia.
