China's July exports climb 23.9% as AI demand offsets trade tensions
China's exports rose 23.9% year-on-year in July in dollar terms, beating forecasts, while imports grew 27.5%, customs data showed on Friday, as global AI infrastructure investment drove demand for Chinese technology products.
July trade data
China's exports expanded 23.9% in July from a year earlier in U.S. dollar terms, data from the General Administration of Customs released on Friday showed, slowing from 27% growth in June. The figure beat the 22.2% rise forecast in a Reuters poll and matched the 23% median estimate in a Bloomberg survey of analysts. Imports rose 27.5% year-on-year in dollar terms, down from 36% growth in June, falling short of both the 27.9% forecast in the Reuters poll and the 29.5% median estimate in the Bloomberg survey. The July trade surplus, exports minus imports, reached $112.5 billion.
The figures extend a string of recent monthly increases for the world's second-largest economy. China's trade surplus in goods last year hit a record $1.2 trillion, adding to concerns from trading partners over a perceived imbalance.
- Exports June
- 27 %
- Exports July
- 23.9 %
- Imports June
- 36 %
- Imports July
- 27.5 %
AI demand drives technology exports
The global expansion of AI infrastructure has been a key driving force behind Chinese trade this year, fueled by persistently strong global demand for artificial intelligence products. Exports of computers and related components rose 45.2% in the first seven months of the year compared with the same period a year earlier, according to customs data. Electric vehicles and other high-value products have also supported the Chinese economy as domestic demand remains weak.
Higher prices have contributed to the strong trade values. Some chip prices have risen as much as 700% over the past year amid a global AI investment surge and shortages of semiconductors and other electronics. Chinese export prices in June stood 8% higher than a year earlier.
Exports to the United States
Chinese exports to the United States increased 17% year-on-year in July, a figure closely watched amid trade frictions between Beijing and Washington. The growth came despite the war in the Middle East and persistent tensions between the two largest economies.
The trade data was published days after a new deterioration in relations between the two countries. China this week announced restrictions on exports of drones and related products to the United States and placed six American companies on a blacklist. The measures were a response to a series of recent trade sanctions imposed by Washington against Beijing, which the United States cited as targeting forced labor and defending American national security.
- Exports (actual)
- 23.9 %
- Exports (Bloomberg forecast)
- 23 %
- Imports (actual)
- 27.5 %
- Imports (Bloomberg forecast)
- 29.5 %
Broader economic pressure
China's economy has faced pressure this year, with official growth in the second quarter falling below an official target that was already the lowest in decades. The strong trade performance has helped offset weak domestic demand, though the pace of growth moderated from June's levels in both exports and imports.
A global investment supercycle in artificial intelligence helped offset disruptions to trade from extreme weather. Both exports and imports maintained double-digit gains in July, with growth rates cooling from June but beating forecasts in the case of exports.
