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CHINA: Export Surprise To Bring Further Challenges from Trading Partners.

CHINA
  • China’s exports expanded in August, a surprise to the market.
  • Exports were up 8.7% yoy whilst Imports rose only 0.5% yoy.
  • This resulted in a trade surplus of US$91bn, the largest since June this year.
  • This data release was a rare positive release for the Chinese economy, which is stuck in a deflationary pattern.
  • The export release is reflective of an increase in shipment volume but as seen in Monday’s PPI, the price received for shipments is in serious decline.
  • At a time where trade tensions are present in the US Presidential Race and significant trading partners such as Canada and the E.U are raising tariffs, a trade surplus of this magnitude can only create further tensions in the longstanding debate on China trade 

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