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The offshore yuan held steady around 6.70 per dollar on Tuesday, remaining near its strongest level since January 2023, as strong trade data reinforced optimism over China’s external demand. Exports climbed 25.0% year-on-year to USD 401.44 billion in August 2026, accelerating from 23.9% growth in July, while imports surged 28.2% year-on-year to USD 282.4 billion, picking up from 27.5% in July and extending double-digit growth for an eighth straight month. As a result, China’s trade surplus widened to USD 119.09 billion in August from USD 101.09 billion a year earlier, matching forecasts. The robust trade figures came as Washington stepped up pressure on Beijing to address trade imbalances ahead of a planned Trump-Xi meeting, while the two countries remain under a fragile tariff truce set to expire in November. Trade tensions between Beijing and Brussels are also mounting ahead of an October deadline to address imbalances, which EU leaders increasingly view as a strategic concern.
