China’s exports in RMB terms declined 6.1% year-on-year in August, compared with 8.9% contraction in July.
The country’s Imports fell sharply by 14.3% year-on-year in August, from a 8.6% contraction in the previous month, reflecting depressed commodity prices and weak domestic demand.
As exports fell less than imports did, the trade surplus widened significantly to RMB368 billion (US$60.2 billion) in August, much higher than the average of RMB267 billion (US$43.8 billion) in the first seven months.
"The recent depreciation of the RMB will unlikely have a significant impact on China’s export competitiveness in the near term," says a research report by ANZ.
"While RMB’s depreciation expectations remain, the large monthly trade surplus should remind investors that China does not suffer large net capital outflows. Given capital controls are still effective and FX reserves remain large, the PBoC will be able to keep the currency at a range it would like to see," says the report.