China Posts Record Surplus as Exports-Imports Diverge

China’s trade surplus climbed to a record in August as exports (CNFREXPY) rose on the back of increased shipments to the U.S. and Europe, while imports fell for a second month as a property slump hurt domestic demand.

Exports increased 9.4 percent from a year earlier, the Beijing-based customs administration said on 8 September. Imports unexpectedly dropped 2.4 percent, leaving a trade surplus of $49.8 billion.

Divergent directions for exports and imports show China is some way from providing the global growth boost will eclipse the U.S. economy in 2024. Languishing domestic demand underscores risks to the government’s economic-growth target this year of about 7.5 percent as home prices and construction fall, boosting chances of additional stimulus.

U.S. Economy

China’s exports are being helped by U.S. economic growth that rebounded to a 4.2 percent annualized pace in the second quarter, with measures of consumer confidence and manufacturing rising in August, and construction spending increasing in July from the previous month by the most in two years.