China Exports Surge 25% in August as Trade Surplus Hits $119 Billion

China’s exports posted another strong increase in August, while imports exceeded market expectations, highlighting resilient trade activity despite signs of weakness in the world’s second-largest economy.

Official customs data released Tuesday showed that China’s exports climbed 25.0% year-on-year in August. The increase matched economists’ forecasts and accelerated slightly from the 23.9% growth recorded in the previous period.

Imports also maintained strong momentum, rising 28.2% from a year earlier. Although that marked a slowdown from the previous 30.0% increase, the figure surpassed market expectations for 27.5% growth.

China’s trade surplus widened as a result. The surplus reached $119.09 billion in U.S. dollar terms in August, compared with $112.50 billion previously. The latest figure was also slightly higher than economists’ forecast of $118.60 billion.

The August trade data underscores the continued strength of China’s export sector at a time when global trade conditions remain challenging. Strong overseas shipments have provided an important source of support for economic growth as policymakers contend with uneven demand at home.

However, recent domestic economic indicators have painted a less encouraging picture. Industrial production, retail sales and fixed-asset investment have shown signs of weakening during the third quarter, increasing pressure on Beijing to introduce measures aimed at stabilizing economic activity.

Chinese authorities have responded with additional fiscal support, including an 800 billion yuan infrastructure investment initiative designed to stimulate demand and bolster broader economic growth.

The combination of robust China exports, stronger-than-expected imports and a widening trade surplus suggests that external trade remains a key pillar of the economy. Still, persistent weakness in domestic activity could keep policymakers focused on further stimulus as they seek to maintain growth momentum.

Investors will continue monitoring upcoming China economic data for indications of whether strong trade performance can offset softer domestic consumption and investment in the months ahead.