China’s trade surplus slumped to US$68.36 billion in August 2023 from US$78.65 billion in the same period a year earlier, below market forecasts of US$73.9 billion. It was the smallest trade surplus since May, as exports dropped more than imports amid persistently weak demand from home and abroad. Exports shrank 8.8% year on year (y/y), the fourth straight month of decline, better than market consensus of a 9.2% fall; while imports fell by 7.3%, the sixth consecutive month of decrease, compared to the consensus of a 9% drop. Considering the first eight months of the year, the country recorded a trade surplus of US$553.4 billion, with exports shrinking by 5.6% while imports fell by 7.6%. The trade surplus with the United States widened to US$33.06 billion in August from $30.3 billion in July, pushing the year-to-date surplus to US$214.88 billion.
