China August Exports Accelerate to 25%, Imports Surge 28.2%

China's exports accelerated in August, growing 25% year-on-year in dollar terms, according to a Reuters poll of 35 economists. This marks an acceleration from the 23.9% growth seen in July and indicates continued reliance on external demand to bolster the economy amidst domestic weaknesses.

Imports also showed stronger growth, rising 28.2% year-on-year in August, compared to 27.5% in July. Consequently, China's trade surplus is expected to widen to $119.05 billion from $112.5 billion in the previous month.

Exports have become a crucial pillar for China's economic growth, especially as domestic consumption and investment remain tepid. This export strength, buoyed by global demand for high-tech goods, has helped sustain momentum. However, the reliance on exports raises concerns among Western trading partners.

Policymakers have set a GDP growth target range of 4.5-5% for 2026, but economic momentum slowed to 4.3% in the second quarter. Recent data for July showed continued weakness in domestic demand and investment.