China's exports continue to rise in double digits, supporting the country's economy despite a strengthening yuan.
According to data released by the General Administration of Customs on September 8, China's exports reached $401.4 billion in August, a 25.0% increase compared to the previous year. This figure surpasses July's export growth rate of 23.9% and aligns with the 25.0% forecast compiled by Reuters. China's imports in August totaled $282.3 billion, marking a 28.2% year-on-year increase, though slightly below the Reuters estimate of 30.0%. Consequently, China's trade surplus for August stood at $119.0 billion, bringing the cumulative trade surplus for the year to $805.5 billion.
In August, China's exports to the United States rose 34.4% to $42.4 billion, while imports from the U.S. increased by 17.8% to $13.2 billion. The total trade volume between China and the U.S. for August grew by 30.0% year-on-year.
Exports to South Korea also saw significant growth, with a 49.3% increase to $18.0 billion, and imports from South Korea surged by 108.1% to $32.1 billion. The cumulative trade volume between China and South Korea rose by 82.3%.
The increase in overall exports is attributed to a rise in shipments of high-value manufactured goods, including automobiles, electric vehicles, batteries, and solar products. Additionally, rising raw material prices, such as semiconductors, have contributed to increased imports.
However, China's crude oil imports fell to 37.92 million tons in August, a decrease of 23.4% from the previous year. The cumulative import volume for August this year is down 14.6% compared to last year.
Notably, the People's Bank of China has reported that the yuan's exchange rate against the dollar has dropped from around 7.10 yuan to approximately 6.78 yuan over the past year, indicating an appreciation of more than 4% in the yuan's value against the dollar. Analysts suggest that the cost competitiveness of Chinese manufacturing, along with its extensive supply chains and production capacity, is absorbing the price pressures from currency fluctuations.
* This article has been translated by AI.
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