China’s exports fell unexpectedly in August, as the trade war with the United States continued to hit the world’s second largest economy. Exports fell by 1 per cent last month after growing 3.3 per cent in July. The August result was below the 2.1 per cent growth expected in poll of analysts conducted by Bloomberg.
July’s expansion now seems like an anomaly, likely driven by front-loading as new tariffs of 15 per cent on about US$110 billion of Chinese goods that took effect on September 1. American buyers of Chinese goods subject to the new tariffs were likely to have filled their inventories as much as possible before the goods became more expensive to import.