China says trade grew in August, but below forecasts

AFP | Beijing

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China says trade grew in August, but below forecasts AFP | Beijing, China China's exports missed expectations but expanded 4.4% year-on-year in August, official data showed Monday, with falling US shipments offset by a jump in those to Southeast Asia and Europe.

Trade tensions between Beijing and Washington have been on a rollercoaster ride in 2025, with both sides slapping escalating tariffs on each other.

Exports to the United States -- China's largest single-country trading part- n e r -- continued to fall in August, Monday's data showed, sinking 11.8% from the previous month and 33.1% from a year earlier.

However, shipments to the European Union jumped 10.4% and those to the Association of Southeast Asian nations rose 22.5% year-on-year.

Overall though exports failed to meet a Bloomberg forecast of 5.5%.

Imports similarly did not meet expectations, growing 1.3% year-on-year in August, compared with a forecast of 3.4%.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the "frontloading" of exports -- accelerating shipments in anticipation of further tariffs -- is "probably fading away".

The resilience of Beijing's exports this year can also be attributed to Chinese businesses pushing for higher market share in other countries, exacerbated by weak domestic demand, he said.

Southeast Asia and China have deeply interwoven supply chains and Washington has long accused Chinese manufacturers of "transshipping" -- having products pass through a country to avoid harsher trade barriers elsewhere.

"Trade diversion remains evident," Yue Su, principal economist at the Economist Intelligence Unit, told AFP.

"Much of this reflects... supply-chain diversification to avoid higher tariffs, a practice also seen during the first US-China trade war," Su added.