What's going on?

Data out late Sunday showed China�s international trade declining � piling pressure on the country to explore further economy-boosting measures.

What does this mean?

Chinese overseas exports in August were 1% lower than a year before when measured in US dollars � especially significant as foreign companies were supposedly racing to receive shipments before new US trade taxes kicked in. Indeed, American exports were worth 16% less than last August�s.

In order to meet its 6% economic growth target this year, the Chinese government may be forced to explore yet more stimulus measures. An interest rate cut is one option: that�d see it following in the footsteps of not just the USA but also fellow BRICS member India, where annual economic growth has slowed to 5%. A full-throttle collapse in auto sales is the latest symptom of the Indian slowdown, putting millions of jobs at risk. Nissan�s CEO doesn�t have to worry, however: he stepped down on Monday following another pay scandal compounding the Japanese carmaker�s worst year in over a decade.

Why should I care?

For markets: Don�t believe everything you read � just Finimize ?
Earlier this year, controversy erupted in India around the collection and subsequent revision of economic growth data � and many companies are now questioning the reliability of China�s figures too. With official data closely controlled (and potentially massaged) by the government, savvy investors are increasingly focused on alternative gauges of the strength of China�s economy.

The bigger picture: Australia is firing up the grill.
The US-China trade war has been bonzer for at least one country: Australia. More economy-boosting construction activity in China has seen an increase in shipments of Australian commodities like iron ore � leading the country to clock up its first �current account surplus� since 1975 in the second quarter of 2019. Still, things may have peaked � and fears of a sharper economic slowdown in China (and elsewhere) may soon prompt Australia�s central bank to cut interest rates again.