Source: CNBC
Date: 7th September 2025

Weakened demand, tariff pressures, and shifting trade flows drive the lowest export growth in six months.

China’s exports to the U.S. dropped sharply by 33% in August, while overall export growth slowed to just 4.4% in U.S. dollar terms, the weakest pace since February.

Imports from the U.S. also fell by 16%. The slowdown comes amid ongoing tariff pressures, the fading boost of earlier frontloading, and tightening scrutiny over rerouted shipments.

With bilateral talks showing little progress and threats of further tariff hikes looming, the near-term trade outlook remains uncertain.

At the same time, China is increasingly turning toward alternative markets to offset the U.S. slump.

Exports to the European Union rose 10.4%, shipments to the Association of Southeast Asian Nations climbed 22.5%, and exports to Africa surged nearly 26% in August.

Year-to-date figures underscore this shift: while exports to the U.S. have declined by 15.5%, shipments to the EU, ASEAN, Africa, and Latin America have all posted substantial gains.

Despite these shifts, the U.S. remains China’s single largest national trading partner.

On the domestic front, demand remains sluggish as the real estate downturn and consumer insecurity weigh on imports, which rose only 1.3% in August, missing forecasts.

Policymakers in Beijing are expected to explore further fiscal and monetary support in the months ahead, with economists anticipating additional measures such as rate cuts to counter deflationary pressures.

Analysts warn that while China’s diversification strategy provides resilience, both external trade tensions and weak domestic consumption will continue to challenge growth through the remainder of the year.