China’s export machine keeps humming, despite geopolitical woes and decoupling pressure
- China’s export machine has proven resilient this year, with August data underlining the world’s reliance on it for products such as medical goods and electronics
- Although China’s exports to the US surged, its total trade with the US fell behind the European Union and Asean nations in the first eight months
A global value chain realignment away from China has yet to occur as the nation’s export machine keeps humming and its purchases from upstream countries including Japan and South Korea remain largely stable, Chinese customs data showed on Monday.
The United States was the biggest buyer of Chinese exports for the fifth consecutive month in August, despite talks of decoupling between the world’s two largest economies.
Between January and August, exports to the US dropped 3.6 per cent from a year earlier, while products sent to the EU rose 2.1 per cent and shipments to the Association of Southeast Asian Nations bloc rose 3.7 per cent. The top three markets jointly accounted for about half of China’s total overseas shipments.
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Though exports in August surged 9.5 per cent from a year earlier, imports remained sluggish. They fell by 2.1 per cent compared with August 2019, highlighting the uneven nature of China’s economic recovery from the coronavirus pandemic.