- China's exports grew 23.9% in U.S. dollar terms in July from a year earlier, topping Reuters-polled analysts' forecast for a 22.2% growth.
- Imports rose 27.5% last month, just shy of Reuters estimates of 27.9%, slowing from the quickest in five years.
- Chip exports surged 117% in July alone, according to official data.
- Integrated circuit exports nearly doubled year-to-date as of the end of July.
- Shipments to the U.S. grew around 17% from a year ago, quickening from about 14% in June, as exporters raced goods ahead of anticipated tariff increases.
- Exports to the EU expanded 16% year on year in July, while imports from the bloc shrank 1%.
- Economist Zhiwei Zhang expects intense trade negotiations ahead of the U.S.-China summit in September and EU-China meeting in October.
- China's export engine is likely to remain strong in the third quarter, according to Zhiwei Zhang.
- A global investment supercycle in artificial intelligence is powering tech demand overseas and at home, helping China's exports and imports ride out disruptions in July.
China's exports grew 23.9% in July, exceeding forecasts, as AI-driven shipments and a remarkable 117% surge in chip exports bolstered trade despite extreme weather conditions. This growth reflects a resilient economy navigating geopolitical tensions and domestic consumption challenges.1
According to data from China's customs authority, exports of mechanical and electrical products accounted for over 60% of total shipments in the first seven months of the year, driven by demand for electric vehicles, lithium batteries, and wind power equipment.
Imports also saw a significant increase, rising 27.5% in July, just below the 27.9% forecast by Reuters. This marks a slowdown from the fastest growth in five years, indicating a complex trade landscape.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, stated, “China's export engine is likely to remain strong in the third quarter,” suggesting ongoing resilience in the face of global economic challenges. He anticipates “intense negotiations” between China and major trading partners in the coming months, particularly ahead of the U.S.-China summit in September and the EU-China economic meeting in October.9
Overall, China's trade performance in July illustrates the impact of a global investment supercycle in artificial intelligence, which has fueled tech demand both domestically and internationally, allowing the country to navigate disruptions effectively.10
“Imports rose 27.5% in July, just shy of estimates, while shipments to the U.S. grew 17%, quickening from 14% in June as exporters raced goods ahead of tariff increases. Economist Zhiwei Zhang expects intense trade negotiations ahead of the U.S.-China summit in September and EU-China meeting in October.”
CNBC
