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China: Merchandise exports increase in August
Latest reading: Merchandise exports increased 4.4% year-on-year in August (July: +7.2% year-on-year). The figure marked the softest expansion since February and was slightly below market expectations. Plunging exports to the U.S. partly offset strong sales to the Asia-Pacific region. Meanwhile, merchandise imports increased 1.3% over the same month last year in August (July: +4.1% yoy).
As a result, the merchandise trade balance improved from the previous month, recording a USD 102.3 billion surplus in August (July 2025: USD 98.2 billion surplus; August 2024: USD 91.6 billion surplus). Lastly, the trend improved, with the 12-month trailing merchandise trade balance recording a USD 1165.8 billion surplus in August, compared to the USD 1155.0 billion surplus in July.
Panelist insight: United Overseas Bank’s Ho Woei Chen said:
“Exports remained supported by demand from non-US markets whereas shipments to the US contracted for the 5th consecutive month since Apr. US remained the worst performing market for Chinese exports with the decline widening to -33.1% y/y in Aug from -21.7% y/y in Jul. US tariff policy has continued to drive the diversification of supply chains outside of China while demand for Chinese exports have been diverted to markets including those in ASEAN such as Vietnam and Thailand.”
