Catenaa, Tuesday, September 09, 2025- China’s export growth slowed to its weakest pace in six months in August as the temporary lift from a US tariff truce faded.
Outbound shipments rose 4.4% year-on-year, missing the 5% forecast, while imports grew 1.3%, also below expectations, customs data showed Monday.
Exports to the United States dropped 33%, reflecting continued uncertainty over tariffs and trade policies, while shipments to Southeast Asia rose 22.5%, helping offset losses in the US market.
Analysts said Chinese manufacturers are diversifying into Asia, Africa, and Latin America to reduce reliance on American buyers.
Economic pressures remain high, with a prolonged property sector slump and slow domestic consumption limiting the impact of fiscal stimulus measures.
Local governments have curtailed flagship programs, such as cash-for-clunkers subsidies, reducing support for domestic demand.
Overall, China’s trade surplus rose to $102.3 billion in August, from $98.2 billion in July, though still below June’s peak of $114.8 billion.
Beijing and Washington extended their tariff truce in August, maintaining US duties of 30% on Chinese imports, but trade talks show limited progress toward a durable agreement.
Economists warn that any further tariff escalation above 35% could severely constrain Chinese exports, underscoring the importance of alternative markets.
Chinese officials are expected to continue pursuing a mix of export diversification, measured fiscal support, and cautious monetary easing to meet annual growth targets of around 5%, while avoiding aggressive domestic reforms.
