Market Highlight 11.08.2026

China is finding a new source of export growth by supplying goods to factories around the world. No longer merely a producer of low-cost consumer goods, China is increasingly exporting higher-value products that serve as essential inputs for global manufacturing. China’s critical role across much of the world’s supply chains is making its export engine more resilient and adaptable to tariffs, which are often imposed primarily on finished goods. In the first 5 months of 2026, China’s exports of intermediate goods and capital goods increased by 25% and 12% YoY, respectively, while consumer goods exports rose by 4%. China’s transformation has been driven by a range of policies encouraging higher localization rates and greater domestic production of components, while its vast domestic market and intense competition have accelerated the country’s industrial upgrading. China’s strong supplier network and infrastructure have also helped improve production efficiency. In 2025, when the U.S introduced new tariffs, China’s consumer goods exports declined for the first time since 2019. However, exports of intermediate inputs and capital goods increased by more than 175 billion USD from the previous year, helping China’s trade surplus rise to a record 1,2 trillion USD.

The USD strengthened by 0,12% on Monday ahead of the release of U.S July consumer inflation data on Wednesday night. Much weaker-than-expected July employment data have increased doubts over the likelihood of a FED rate hike at the upcoming September meeting. Domestically, interbank USD/VND fell sharply to 26.120 on Monday morning before recovering to around 26.150 by the end of yesterday’s session.

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