China exports surge but imports slow
China’s exports grew at their fastest pace in nearly 1 1/2 years in August, in a sign of growing demand abroad even as imports posted slower growth. The mixed trade data highlights the challenge facing Beijing as policymakers try to bolster overall growth without becoming too reliant on exports, especially given the tightening of consumers' purse strings. Outbound shipments from the world's second-largest economy grew 8.7 percent year-on-year in value last month to US$308.65 billion, the highest since March 2023, customs data showed on Tuesday, beating a forecast 6.5 percent increase in a Reuters poll of economists and a 7 percent rise in July. It's also the fifth consecutive month exports have gone up. In the January-August period, exports rose 6.9 percent year on year. But imports increased by just 0.5 percent last month, missing expectations for a 2 percent boost and down from the 7.2 percent growth a month prior. Imports rose 4.7 percent in the first eight months of the year from a year ago. China’s trade surplus in August widened to US$91 billion, compared with US$84.6 billion in July. The trade surplus in the January-August period came in at US$608.5 billion. "The strong export performance and trade surplus is favourable to economic growth in the third quarter and whole year," said Zhou Maohua, a macroeconomic researcher at China Everbright Bank. "However, the global economic and geopolitical environment is complicated and China's exports face a lot of headwinds," he added.  Zichun Huang of Capital Economics said, "Imports volumes fell last month, but they will probably rebound in the coming months, with strong external demand lifting imports for processing and re-export, and increased fiscal spending boosting industrial commodities demand." (Agencies)