China’s exports grew more than expected in August, supported by the global AI build-out, though the surge in overseas shipments could fuel tensions over imbalances with trading partners.
China’s semiconductor exports, measured by value, surged 130% from a year earlier in August, accelerating from 117% growth in July. Exports of automatic data processing equipment and related parts rose 76.5% last month, also picking up from the 67.4% increase in July, according to data released Tuesday. However, Chinese chip exports were lifted by soaring prices, with volumes actually contracting by 7.9% last month, said Nguyen Hoang Nam, an economist at Capital Economics.
A Group of 20 statement issued earlier this month, and backed by every member except China, implicitly called out Beijing’s reliance on exports for growth. China’s exports to the U.S. rose 34.3% in August, accelerating from 17.1% growth in July, while export growth to the European Union slowed to 6.6% from 16.0%, according to data released Tuesday.
This could intensify pressure from trading partners to rebalance terms of trade,” said ING economist Lynn Song. “Despite China’s strong import growth, exports are set to lead to a new record-high trade surplus this year. Exports have become a key pillar of support for the Chinese economy, helping to sustain growth amid tepid domestic consumption, sluggish investment and a protracted property downturn. Resilience in exports could also reduce the urgency for Beijing to shore up weaker parts of the economy.
The country’s imports increased 28.2% in August, compared with July’s 27.5% growth and the 29.1% rise expected by surveyed economists.
