As shipments to the US slowed sharply, China's exports unexpectedly fell in August. Worries added regarding the effects of the two nations' trade war.
To avert the risk of a sharp economic slowdown, more support measures are expected soon. These could include the cuts of key lending rates for the first time in four years. From a year earlier, August exports from China fell 1 percent. This has been the biggest fall since June with a 1.3 percent drop.
In August, China's exports to the US fell 16 percent year-on-year. In July, exports to the US declined 6.5 percent. Meanwhile, imports from the US seen dropping 22.4 percent.
With the US announcing 15 percent tariffs on a wide range of Chinese goods from September, there were escalations in August in the year-long trade row. China hit back with levies of its own. To offset some of the tariff pressures, it let its yuan currency fall.
To free up more funds for lending, on Friday, China's central bank cut banks' reserve requirements for the seventh time since early 2018. Since the global financial crisis, for the first time, China in August let its currency slide past the key 7-per-dollar level.
Related stories:
