Chinese exports decline for fourth straight month, down 8.8% in August

Sept. 7 (UPI) -- Chinese exports dropped by 8.8% in August compared to one year ago, the fourth consecutive month of export decline, according to customs data released Thursday.

According to China's General Administration of Customs August imports dropped by 7.3% from a year ago.

July exports were down 14.5%, so while still in negative territory August figures showed some improvement.

"In general, the figures still suggest the headwinds remain despite some marginal improvement," Hao Zhou, chief economist at Guotai Junan International, said in a statement. "Looking ahead, whether China's trade growth has already hit the bottom will hinge on several factors," he said, including Chinese yuan weakness relative to the U.S. dollar and rising oil prices.

University of Hong Kong Professor Chen Zhiwu, said the business environment in China has improved after months of efforts by the State Council. He said other policies from other government agencies, though, have been contradictory.

"There should be some more short-term rebound in China's trade and economy, but longer term concerns are still there due to political and geopolitical factors," Zhiwu said.

In August China cut the prime interest rate in a bid to stimulate its softening economy. Chinese GDP growth was 0.8% in the second quarter compared with 2.2% in the first quarter.

After those results, Chinese regulators pledged more support to stabilize the country's real estate market.

While Chinese exports continue to be weak this year, during the pandemic they were very high.

According to economic research organization China Beige Book, "Export orders aren't looking good to the U.S. or Europe, but in terms of Asia and elsewhere they are ramping up solidly."

Exports to the U.S. declined by 9.5% in August while imports into China from the U.S. fell by 7.9% from a year ago. The U.S. is China's single largest trading partner on a single-country basis.