China exports, imports fall again in August but pace slows

BEIJING: China’s exports and imports sank again in August, data showed Thursday, as the world’s second-largest economy struggles with sluggish global demand and a wider slowdown.

However, the pace of contraction slowed from the previous month and not as bad as feared.

Overseas shipments sank 8.8 percent on-year, the customs authority said, compared with a 14.5 percent plunge in July, while imports were off 7.3 percent, from a 12.4 percent retreat before.

Economists surveyed by Bloomberg News forecast both to fall nine percent.

Apart from a brief rebound in March and April, China’s exports — long a driving force for growth — have been in constant decline since October.

In July they fell to their lowest level since 2020, when global demand was hammered by the Covid-19 pandemic.

The threat of recession in the United States and Europe, combined with high global inflation, has contributed to weakening international demand for Chinese products this year.

The trade figures are the latest indication that China’s post-Covid recovery has run out of steam, having enjoyed a brief surge after officials removed growth-killing zero-Covid measures at the end of 2022.

A report showing China’s services sector grew last month at a much slower pace than expected added to the negative sentiment this week.

The property sector remains in turmoil, with major developers failing to complete housing projects, triggering protests and mortgage boycotts from homebuyers.

Authorities have come under increasing pressure to introduce fresh stimulus after months of debilitating data.