China’s trade surplus dropped in August after imports grew at a faster rate than expected, an indication that domestic demand could be rebounding after several months of slowdown.
The trade surplus fell from $28.7bn in July to $20.03bn last month as a result of the surging imports, although analysts said the level of the surplus remained high enough to keep political pressure on Beijing over its exchange rate policy.
Politicians in the US have stepped up their criticism of what they see as China’s undervalued exchange rate in recent weeks, raising new fears that the argument could lead to a trade dispute.
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