On Sunday, the 8th of August 2019, export data from China’s Customs had added further strains on to China’s calamitous economic outlook, which might have been drowning deeper into a recession as every day went by, since China’s export had witnessed an unprecedented contraction in August while US shipments were curbed sharply amid an escalation of the Sino-US trade war.
Aside from that, followed by Sunday’s (September 8th) China data which unleashed further upheaval on China’s economy which had been scuffling to grapple with a basket of baleful turn of events on its trade dispute with United States, several analysts were pointing towards further weakness in the second-largest economy of the world, while some of them had underscored a more pressing requirement of monetary stimulus to smoothen up the nation’s domestic financing amid growing obstacles in the wake of an escalated Sino-US trade dispute.
Meanwhile, accusing a sluggish external demand behind a cascade of calamitous August data including a contraction in export, an economist at Zhong Hai Sheng Rong Capital Management, Zhang Yi said, “Exports are still weak even in the face of substantial yuan currency depreciation, indicating that sluggish external demand is the most important factor affecting exports this year.
” According to Sunday’s (September 8th) China customs data, Chinese export to the US fell by 16 per cent on a year-on-year basis, squeezing sharply from a 6.5 per cent fall in July, while US imports were shrunk by 22.4 per cent last month.
Aside from that, Sunday’s (Sept. 8th) data also displayed a dwindling trade surplus for China, as the world’s second-largest economy reported a trade surplus of $34.84 billion on August, roughly a quarter percentage down from a trade surplus of $45.06 billion on July.