China’s Trade Growth Weakens in August
China's exports to the U.S. fell in August for the first time since May 2020, while shipments to Russia surged, "adding to evidence that slowing economies and the war in Ukraine are shifting global trade flows along geopolitical fault lines," according to Bloomberg.
"China's slowdown is rippling across the world, with the weak import figures spelling bad news for major commodity producers such as Australia and Brazil. Top manufactured goods makers, like Germany and South Korea, are also seeing weaker demand from China," according to the news outlet.
Exports rose 7% over a year ago to $314.9 billion, decelerating from July's 18% expansion. Imports contracted by 0.2% to $235.5 billion, compared with the previous month's already weak 2.3% growth, per the Associated Press.
The overall demand for Chinese exports has decreased as central banks in Europe, Asia and the U.S. raise interest rates to cool inflation. "The slowdown in China's export sector is adding to headwinds for the Chinese economy," said Rajiv Biswas of S&P Global Market Intelligence in a report. Lack of import growth highlights "continued weakness of Chinese domestic demand."
China is left with a narrower trade surplus of $79.39 billion, compared with a $101.26 billion surplus in July, which was a record for single-month goods trade balance for any country in history, per CNBC.
In Taiwan, exports are also at their slowest pace in two years, with overseas shipments growth only at 2% in August compared to the prior year.