The offshore yuan was little changed around 6.70 per dollar on Tuesday, hovering near its strongest level since January 2023, as robust trade figures bolstered confidence in China’s external demand. Exports rose 25.0% year-on-year to USD 401.44 billion in August 2026, accelerating from July’s 23.9% growth, while imports jumped 28.2% year-on-year to USD 282.4 billion, up from 27.5% in July and marking an eighth consecutive month of double-digit gains. Consequently, China’s trade surplus widened to USD 119.09 billion in August from USD 101.09 billion a year earlier, in line with market expectations.
The strong trade data emerged as Washington increased pressure on Beijing to address trade imbalances ahead of a planned Trump–Xi summit, with the two sides operating under a fragile tariff truce that is set to expire in November. At the same time, trade frictions between Beijing and Brussels are intensifying ahead of an October deadline to tackle widening imbalances, which EU leaders are increasingly framing as a strategic challenge.
