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8.8% Fall In China’s Exports For August Amidst Persistent Trade Slump

8.8% Fall In China’s Exports For August Amidst Persistent Trade Slump
Despite being less severe than anticipated, China announced another monthly decrease in imports and exports on Thursday. In August compared to a year prior, exports decreased by 8.8% in U.S. dollars. That is superior to the 9.2% decline predicted by a Reuters poll.
Better than the 9% reduction predicted by Reuters, imports in U.S. dollars decreased by 7.3% in August compared to the same month last year. From the previous month in 2023, imports have now decreased every month. Since April, exports have decreased annually as a result of a decline in the market for Chinese products worldwide.
According to CNBC calculations using official statistics obtained through Wind Information, China's exports to the United States decreased by 9.5% in dollar terms in August compared to the same month last year, which was better than a loss of more than 20% in each of the two previous months.
The report indicated that China's imports from the US decreased by 7.9% in August compared to a year earlier, which was an improvement from a double-digit loss in July.
China's top trading partner in terms of only one nation is the U.S. China's top regional trading partner is the Association of Southeast Asian Nations.
According to the data, China's exports to Southeast Asia decreased by 13.3% in August over the same month last year, while imports decreased by 6.1%. Both numbers showed an increase from July.
“In general, the figures still suggest the headwinds remain despite some marginal improvement,” Hao Zhou, chief economist at Guotai Junan International, said in a note.
“Looking ahead, whether China’s trade growth has already hit the bottom will hinge on several factors,” he said, pointing to property, rising oil prices and Chinese yuan weakness relative to the U.S. dollar.
China imports the largest quantity of crude oil in the world. 
According to customs data, the amount of the country's imports of the good increased by 14.7% over the previous year's first eight months, which was a quicker rate than the 12.4% rate as of July.
In recent months, a decline in the real estate market and weak consumer spending have hampered China's economic recovery from the pandemic.
Exports of automobiles were still a bright feature, but growth slowed in August.
According to customs data, sector exports increased 69% over the first eight months of the year compared to the same time in 2022. This is a decrease from the 74.1% gain seen in the year's first seven months.

Christopher J. Mitchell

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