Steel exports fell sharply after China cancelled a tax credit for exporters China reported a surprise surge in imports during August, leading to a fall in its trade surplus to $20bn (£13bn).
Imports rose 35.2% from a year ago, faster than the 26.1% markets expected.
This means that imports grew slightly faster than exports, which rose by only 34.4%, as expected.
The news, which follows a surprising contraction in the US trade deficit in July, will weaken critics of China’s trade practices in the US.
The US Congress is due to hold hearings next week on China’s controversial exchange rate policy.
Many politicians and economists accuse the Chinese of keeping the yuan weak in order to make its exports unfairly competitive.
Chinese steel exports fell 38% in the month, after a 9% tax credit from Beijing for exporters was allowed to expire.
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