Beijing: China’s exports increased last month, but at a reduced rate compared to previous months, according to the country’s customs agency on Monday. Exports amounted to $321.8 billion in August, representing a 4.4 percent rise from the same month last year, down from a 7.2 percent increase in July. Imports reached $219.5 billion, marking a 1.8 percent growth. The significant trade surplus China maintains has raised concerns among key trading partners, including the US and the European Union. While inexpensive Chinese goods benefit consumers, they can also result in job losses in the manufacturing sector. Over the first eight months of the year, China exported $785.3 billion more in goods than it imported, according to monthly customs data.
Since taking office earlier this year, President Donald Trump has enacted an additional 30 percent tariff on imports from China, although he retreated from imposing even higher tariffs after China responded with its own import taxes. Both nations are currently in negotiations to find a resolution to the trade dispute. The tariffs imposed by both sides, and the potential for further increases, are affecting bilateral trade. Chinese exports to the U.S. fell by 33 percent in August to $47.3 billion, while imports from the U.S. decreased by 16 percent to $13.4 billion. Conversely, exports to the EU grew by 10.4 percent to $46.8 billion, and imports from the 27-member bloc slightly declined to $22.8 billion.
Overall, China’s export growth was the slowest since the January-February period, which saw a mere 2.3 percent increase. The first two months are combined in reporting to mitigate distortions caused by the long Lunar New Year holiday. China’s exports of rare earths increased on a monthly basis to $55 million in August from $41 million in July, although this was a 25.6 percent decrease compared to the same month last year. Rare earth magnets, which can endure high temperatures, are essential for various products including washing machines, cars, and fighter jets.
China holds a dominant position in the global rare earth processing market, and a ban on their exports in April temporarily disrupted production at certain factories in Europe and the U.S., raising concerns about potential shutdowns elsewhere. This topic was a key issue during a round of US-China trade negotiations in London in June. China consented to grant additional export permits for rare earths in exchange for the U.S. lifting restrictions on the sale of chip design software and jet engines to China.