Explainer | China trade: 4 takeaways from August’s data as exports fell for a fourth consecutive month

China’s exports fell by 8.8 per cent in August compared with a year earlier, while imports fell by 7.3 per cent last month

Exports to most of China’s major trading partners also continued to shrink in August, though the declines narrowed from July

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China’s exports fell by 8.8 per cent, year on year, to US$284.9 billion in August, while Imports fell by 7.3 per cent last month to US$216.5 billion. Photo: Chinatopix via AP

Andrew Mullen

Published: 7:00am, 8 Sep 2023Updated: 5:39pm, 11 Oct 2023

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1. Exports face challenging outlook for global goods demand

China’s exports fell by 8.8 per cent in August compared with a year earlier, to US$284.9 billion last month.

But the decline narrowed from a fall of 14.5 per cent in July and was above the forecast by Chinese financial data provider Wind for a fall of 9.5 per cent.

“China’s export values continued to contract in August, but this mostly reflects lower prices. Export volumes continued to hold up well and are still above their pre-pandemic trend. We doubt this resilience will last, however, given the challenging outlook for global goods demand,” said analysts at Capital Economics.

Matching the overall fall, exports to most of China’s major trading partners also continued to shrink, although the declines narrowed from July.

Exports to the Association of Southeast Asian Nations (Asean) – China’s largest trade partner – fell by 13.25 per cent compared with a year earlier, marking the fourth consecutive monthly decline.

Shipments to the European Union fell by 19.58 per cent, year on year, while shipments to the United States dropped for the 13th consecutive month after falling by 9.53 per cent.