China Exports Log Strong Growth On Tech Demand

(RTTNews) - China's exports registered a notable growth in August, reflecting strong foreign demand for hi-tech products, official data showed Tuesday.

Exports increased 25.0 percent year-on-year in August, faster than the 23.9 percent growth in July, the General Administration of Customs said. The annual growth came in line with expectations.

At the same time, annual growth in imports accelerated to 28.2 percent from around 27.5 percent in July. However, the pace of growth was weaker than forecast of 30.0 percent.

As a result, the trade surplus rose to $119.09 billion from $112.5 billion in July. The surplus stood above the expected level of $118.6 billion. The surplus has remained above $100 billion for the fourth straight month.

China's exports to the United States increased 34.4 percent from the last year and shipments to the European Union climbed 6.6 percent.

Despite strong growth in imports, exports are set to lead to a new record-high trade surplus this year, ING economist Lynn Song said. This could intensify pressure from trading partners to rebalance terms of trade, he noted.

In recent months, external demand significantly outpaced domestic demand. Despite efforts taken to shore up domestic demand, this divergence persisted in August, the economist noted.

"Tariff risks and the durability of the tech investment cycle are the key factors to watch to see how long this strength will persist," Song added.