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China trade: headwinds remain despite August’s marginal improvement, rebound only short term
- China’s exports fell by 8.8 per cent, year on year, to US$284.9 billion in August, although the decline narrowed from a fall of 14.5 per cent in July
- China’s exports to most of its major trading partners continued to shrink, although the declines narrowed from July
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A narrowing decline of China’s exports in August has failed to ease market concerns, with analysts expecting external demand to remain soft in coming months, despite the traditional high season of Christmas looming.
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Exports tumbled for the fourth consecutive month in August, falling by 8.8 per cent compared to a year earlier to US$284.9 billion, according to customs data released on Thursday.
The decline, however, narrowed from a fall of 14.5 per cent in July, and was above the forecast by Chinese financial data provider Wind for a drop of 9.5 per cent.
The rebound took place amid the yuan’s rapid depreciation – which makes Chinese products cheaper and more competitive – in August.
A lower base last year and the delayed delivery of orders disrupted by typhoons in mid-July also contributed to the improvement, economists said.
Imports, meanwhile, fell by 7.3 per cent last month to US$216.5 billion, narrowing from a 12.4 per cent decline in July, and exceeding the expectations from Wind for a drop of 8.2 per cent.
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