China's exports surge 25% in August, trade surplus hits $119 billion

China’s exports surged in August, jumping 25% year-on-year, bolstered by strong demand for cars and high-tech goods, the General Administration of Customs of China said yesterday. The data came ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping, scheduled for late September, although Beijing has not yet confirmed the exact date of the visit. Exports grew 23.9% year-on-year in July, while imports rose 28.2% in August compared with the same period last year, up from a 27.5% increase in July. This resulted in China recording a trade surplus of $119.1 billion, up from $112.5 billion in July. The trade surplus with the United States widened to $29.18 billion from $28 billion in July, as China’s exports to the US surged 34.4% year-on-year, outpacing import growth of 17.8%. A trade truce between Beijing and Washington, reached late last year when the two leaders met, has held firm despite periodic episodes of tension. The two governments are now exploring mutual tariff reductions on $30 billion worth of goods from each side, in preparation for another summit later this month. China’s exports of rare earth metals rose month-on-month in August in volume terms, but remained well below the monthly average since the start of the year. Meanwhile, crude oil imports fell 23.4% year-on-year in volume. The trade data had little impact on markets, as the yuan stabilized and equities rose slightly, while traders awaited US inflation data for new clues on the Federal Reserve’s interest rate trajectory.