China August Trade Seen Accelerating On AI Demand

China's August exports and imports are expected to accelerate when the data are released tomorrow, with dollar-denominated exports forecast to rise 25% year on year and imports 30%, according to ETNet. The Reuters poll of more than 30 institutions also showed the monthly trade surplus likely widening to $119.05 billion from $112.5 billion in July. The gains are expected despite typhoon-related disruptions, supported by resilient external demand, strong demand from the AI supply chain and price effects. Citi said China's export momentum may remain strong despite the weather impact, while AI-related semiconductor demand is still robust. Huachuang Securities chief economist Zhang Yu said August exports may benefit from external demand resilience driven by AI-related equipment and precautionary restocking, with prices likely outperforming volumes. Goldman Sachs said the AI capital expenditure boom should continue to support technology-related nominal imports.