China’s exports jumped 25% in August from a year earlier on strong demand for autos and high-tech goods as its record trade surplus widened further, its customs agency said Tuesday.
The data was broadly in line with what economists had expected and comes just ahead of a planned meeting between Chinese leader Xi Jinping and US President Donald Trump. That's set for late September, though Beijing has not yet confirmed the exact date for the visit.
Trade is expected to be among the key topics of discussion between Trump and Xi when the two leaders meet.
China’s global imports climbed 28.2% in August from a year earlier, up from July’s 27.5% rise. Exports grew 23.9% year-on-year in July. The trade surplus expanded in August to $119.1 billion from $112.5 billion in July.
Policymakers in the US and elsewhere have raised concerns over China’s ballooning trade surplus, which surged to a record $1.2 trillion for the whole of last year. Beijing has said that it is not seeking to maximize its trade surplus.
In August, China's exports to the US totaled $42.5 billion, up 34.4% year-on-year, in part due to a base effect after higher US tariffs caused exports to fall last year. US exports to China last month were $13.3 billion, leaving a trade surplus in China's favor of about $29.2 billion, according to Chinese data.
Exports to the EU rose 6.6%, while those to Southeast Asia and Latin America rose 30.2% and 17.5%, respectively.
Exports have consistently outpaced imports and are “set to lead to a new record-high trade surplus this year,” said Lynn Song, chief economist for Greater China at the Dutch bank ING.
China has weathered disruptions from the Iran war better than many other countries. It also has been exporting more to Southeast Asia, Latin America and Africa, shielding it from the impact of higher US tariffs.
Exports of autos in August grew 43% year-on-year while semiconductor exports surged 129.8%, the customs data show.
“China is very competitive in its tech goods exports,” said Chi Lo, a senior market strategist for Asia Pacific at BNP Paribas Asset Management. In recent months, rising exports of electric vehicles, industrial machinery and semiconductors have helped fuel China’s robust shipments globally.
“China has moved aggressively up the value chain and has become a major player in AI infrastructure and industrial automation,” he said.
At home, China is still struggling to boost its economy as consumption and investment remained sluggish following a yearslong real estate sector downturn. On Sunday, China said it was injecting around $54 billion into state banks and insurers to help lift its economy.
China's continued reliance on exports to fuel growth prompted 19 members of the Group of 20 large economies to agree to address such economic imbalances at a recent meeting of top financial officials in Asheville, North Carolina. China was the lone dissenting G20 member after US Treasury Secretary Scott Bessent described China’s trade surplus as a barrier to global economic growth.
The strategic stalemate between China and the US will likely remain, said Lo of BNP Paribas. “Both sides hold each other hostage in some strategic products, with the US withholding high-end tech goods from being sold to China and China withholding rare-earth exports to the US,” he said.
China and the EU are also set to meet for ministerial level trade talks in the fall, as the EU struggles to reduce its roughly 1 billion euros-a-day trade deficit with China.
The EU implemented measures in July to protect its steel industry and has limited tax-exempt imports of Chinese e-commerce small parcels.
