The demand for Chinese goods is steadily rising, while domestic demand is on the decline for a second consecutive month. Some experts have associated the trend with the ailing property market. In August, Chinese exports increased more than predicted. The exports from the world’s second largest economy rose by 9 percent while the imports shrunk by 2.4 percent up, from 1.6 percent in the previous month. In the month of August, China exported goods worth $ 208 billion while the imports were valued at $ 158.6 billion. The trade surplus was almost $ 50 billion, which was the highest in recent times. The demand for Chinese goods is expected to remain high for the remaining part of the year. In the same month, the imports iron ore, soya beans and coal fell sharply. This is yet another worrying trend. Crude oil imports rose for the fourth consecutive month but China was a net oil exporter, which means that some of the oil was exported as refined products. Experts are worried by the slow economic growth. Efforts by the Chinese government have failed to revamp the economy. The government has been making efforts to boost domestic demand at a time when the rate of economic growth has slowed down. At the beginning of this year, Chinese economic growth was 7.4 percent the lowest in one-and-half years. Towards June the economy growth recovered by a mere 0.1 percent. According to economist Louis Kuijs, the economy will not significantly improve for the remaining moths. He added that the government should put in place ‘significant measures’ if the trend is to be changed. He noted that the surplus trade will have a significant impact on the Yuan. In 2012 and 2013, the Chinese economy grew by 7.7 percent. This was the lowest growth in more than a decade. This year Chinese authorities have set the growth rate at 7.5 percent.

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