China announced on Thursday that both imports and exports experienced a decline for yet another month, although the decline was not as severe as anticipated.
Throughout 2023, imports have consistently decreased compared to the same period the previous year. Similarly, exports have seen a year-on-year decline since April, reflecting a diminishing global demand for Chinese products.
In August, exports, measured in U.S. dollars, exhibited an 8.8% decrease from the previous year. This result surpassed expectations, as a Reuters poll had predicted a steeper 9.2% decline.
In August, there was a 7.3% decline in imports when measured in U.S. dollars compared to the previous year. This result was more favorable than the 9% decline projected by Reuters.
Throughout 2023, imports have consistently decreased compared to the same period the previous year. Similarly, exports have seen a year-on-year decline since April as global demand for Chinese goods diminishes.
Regarding China's exports to the U.S., they experienced a 9.5% drop in August when measured in U.S. dollars, which was an improvement compared to the significant drops of over 20% seen in the two preceding months, as per CNBC's analysis of official data accessed through Wind Information.
China's imports from the U.S. also showed improvement, with a 7.9% decline in August from the previous year. This marked a better performance compared to the double-digit decline witnessed in July, according to the data.
The United States stands as China's primary individual trading partner, while the Association of Southeast Asian Nations (ASEAN) holds the distinction of being China's most significant trading partner within a regional context.
Data reveals that in August, China's exports to Southeast Asia experienced a 13.3% decline, accompanied by a 6.1% decrease in imports when compared to the previous year. Both of these figures demonstrated improvement compared to the results observed in July.
Hao Zhou, the chief economist at Guotai Junan International, remarked that, "In general, the figures still indicate ongoing challenges, despite some slight improvement."
He also noted that the future trajectory of China's trade growth would depend on various factors, including developments in the property market, fluctuations in oil prices, and the relative strength of the Chinese yuan compared to the U.S. dollar.
China holds the title of being the world's largest purchaser of crude oil.
According to customs data, the volume of crude oil imports by China during the initial eight months of this year witnessed a notable growth of 14.7% when compared to the same period in the previous year. This expansion was even more rapid than the 12.4% rate observed as of July.
China's economic recovery from the pandemic has shown signs of deceleration in recent months, primarily due to a slump in the property market and subdued consumer spending.
One bright spot in this economic landscape has been the export of automobiles, although the pace of growth in this sector experienced a slowdown in August.
Based on customs data, sector exports have surged by 69% during the first eight months of the year when compared to the corresponding period in 2022. However, this rate represents a slight reduction from the 74.1% increase recorded during the initial seven months of the year.
