In addition, China's trade surplus widened to $91.02 billion in August, up from $84.65 billion in July.

China's exports surged by 8.7% in August 2024, reaching approximately $309 billion, marking the fifth consecutive month of growth.

This growth exceeded economists' expectations of a 6.5% increase, representing the strongest export performance in 18 months.

However, imports only saw a modest increase of 0.5%, falling short of the anticipated 2% growth, indicating a potential weakness in domestic demand.

Manufacturing activity in China also faced challenges, falling to a six-month low in August, with the Purchasing Managers' Index dropping to 49.1, signaling contraction.

Concerns about deflation are growing in China, exacerbated by declining producer prices and high tariffs imposed by the U.S. and EU on Chinese electric vehicles.

In response to these economic pressures, China is restructuring its economy to foster new growth drivers, particularly in high-tech sectors like renewable energy and electric mobility.

Despite expectations of fiscal stimulus later this year, analysts remain cautious about the sustainability of China's export growth amid increasing trade restrictions.

China's increasing reliance on exports to support its economy poses risks of heightened dependency, especially as trade barriers emerge as a significant challenge.

Trade dynamics between China and other nations reflect a growing economic relationship, with the U.S. accounting for 11% and the EU for 13% of China's foreign trade in the first eight months.

Experts attribute the recent trade increase to strong U.S. consumer demand for Chinese goods and ongoing dialogues between the two nations.

Chinese authorities have pushed back against Western criticisms, viewing them as protectionist efforts aimed at hindering China's economic growth.