The 5.5-percent contraction of export in August is slightly lower than expected but better than the figure last month, according to a report released by the China Merchants Securities (CMS) on Tuesday.
The report said that the sluggish external demands and efforts made many countries in boosting export to stimulate their economy are still the key challenge for Chinese export.
The deprecation of RMB exchange rate in August may help the yuan-denominated export to expand in size, but the sustainability of such an expansion will depend on the bargaining power of domestic firms, and such an effect need more time to produce.
Due to the continuous decline of CRB metal index and industrial metal, the 13.8-percent plunge in import is much worse than expected, which indicated the weak internal demand. Trade surplus expanded to 368 billion yuan in August due to the dive of import. But the real trade surplus will keep a stable RMB exchange rate, according to the report.
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