China's exports jump 25% in August as trade surplus widens to $119 billion

Trade expected among key topics at late-September Trump-Xi meeting

China’s customs agency reported Tuesday that exports rose 25% year-on-year in August, led by autos and high-tech goods, while imports climbed 28.2%. The figures left China with a $119.1 billion monthly trade surplus, wider than July’s $112.5 billion.

The August export gain followed a 23.9% year-on-year increase in July and came ahead of a planned late-September meeting between U.S. President Donald Trump and Chinese leader Xi Jinping. Beijing has not yet confirmed the exact date for the meeting.

Chi Lo, a senior market strategist for Asia Pacific at BNP Paribas Asset Management, attributed the export strength to China’s position in high-value sectors. “China is very competitive in its tech goods exports,” Lo said. He added that “China has moved aggressively up the value chain and has become a major player in AI infrastructure and industrial automation.”

Lo said rising shipments of electric vehicles, industrial machinery, and semiconductors have fueled China’s exports globally. China has weathered disruptions from the Iran war better than many countries, he said, while diversifying its export destinations to Southeast Asia, Latin America, and Africa — a shift that has cushioned overall shipments from elevated U.S. tariffs.

Policymakers in the U.S. and Europe have raised concerns over China’s trade surplus, which surged to a record $1.2 trillion for 2025. Trade is expected to be among the key topics when Trump and Xi meet.

Lo said the strategic stalemate between China and the U.S. is likely to persist regardless of the meeting’s outcome. “Both sides hold each other hostage in some strategic products, with the U.S. withholding high-end tech goods from being sold to China and China withholding rare-earth exports to the U.S.,” he said.

Separately, China and Europe are scheduled to hold ministerial-level trade talks this fall. Europe is working to reduce its roughly 1 billion euros a day of trade deficit with China and has already implemented measures in July to protect its steel industry and limit tax-exempt imports of Chinese e-commerce small parcels.

At home, China continues to struggle with weak consumption and investment following a yearslong real estate downturn. On Sunday, China announced it would inject approximately $54 billion into state banks and insurers to support its economy.