Beijing (AFP) – China’s imports and exports surged in August, helped by a global AI buildout that has fuelled demand for technology products and ahead of an expected meeting between President Xi Jinping and US counterpart Donald Trump. After achieving a historic surplus in 2025, China’s trade has continued to boom this year, thanks largely to heightened overseas demand for semiconductors, computing hardware, and other products linked to the artificial intelligence boom.
Exports spiked 25 percent year-on-year, the General Administration of Customs said, accelerating from July’s 23.9 percent growth, though the increase was just short of the 25.9 percent forecast in a Bloomberg survey of economists. Imports swelled 28.2 percent, which was faster than July’s 27.5 percent but less than the 31.0 percent estimated in the Bloomberg survey. Strong trade has represented a key lifeline for the Chinese economy in recent months, as domestic activity has been mired in the doldrums.
New growth this year has come from the global AI sector, adding to strengths in other areas including electric vehicles, consumer goods, and industrial equipment. In January through August, the value of China’s exports of computers and related parts surged 49.4 percent, the customs data showed. “China continues to rely on the exporters to support the economy,” wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
But soaring surpluses with several key trading partners have also become a political issue, as officials overseas argue that waves of Chinese imports are crowding out local competition. “The US government made it clear at the G20 meeting that they are concerned about this (trade imbalance) issue,” Zhang wrote. Shipments to the United States climbed 34.4 percent year-on-year last month, compared with the 17 percent increase seen in July.
The latest figures come before Xi and Trump’s expected high-stakes summit in Washington this month. Last year’s global tariff onslaught unleashed by the US president sparked renewed turmoil in the countries’ trade relationship. Sky-high levies imposed by Washington and matched by Beijing were tentatively relaxed late last year after a move by China to severely restrict flows of rare earths to the United States. Despite the turbulence to global trade last year, China achieved a record $1.1 trillion surplus.
Strong growth in exports to the European Union, Southeast Asia, and Africa helped offset a steep drop in shipments to the United States, which were hit by the tariff war.
© 2024 AFP
