Chinese exports declined in August, marking the fourth consecutive month of decrease, according to data from the customs administration released on Thursday, reflecting weaker foreign demand amid rising interest rates and trade disputes with the U.S.
Exports fell by 8.8 percent compared to the same month last year, following a 14 percent drop in July.
Imports also decreased, by 7.3 percent. In July, they fell by 12.4 percent.
China recorded a trade surplus of $68.36 billion in August, down 15.2 percent from the previous month.
Foreign demand for Chinese goods has weakened in recent months under the pressure of higher interest rates that have stifled economic activity. Central banks are raising borrowing costs to curb inflation by dampening demand.
Trade disputes with the U.S. have also weighed on Chinese exports. Washington is seeking to support domestic industry, particularly in the key technology sector, highlighting potential threats to national security.
China is also facing challenges with domestic consumption, which has yet to recover from strict COVID-19 containment measures, as well as issues in the real estate sector and unfavorable demographic trends.
A key indicator of domestic consumption, imports from South Korea, decreased by 20 percent in August, following a 27.5 percent drop in the previous month.
The government has set a growth target of five percent for this year, signaling through a series of incentives that it expects difficulties in achieving this goal.
