China extends trade boom as global AI tech demand surges

Chinese exports and imports experienced a significant surge in July, driven by a global AI boom and increased demand for Chinese technology products, according to official data released on Friday. Chinese exports grew by 23.9 percent year-on-year, surpassing a Bloomberg forecast of 23.0 percent. Imports also rose by 27.5 percent, outpacing the previous month's 36 percent surge but falling short of a 29.5 percent Bloomberg forecast.

The export boom has been fueled by a heightened demand for Chinese data-processing equipment and related components, as businesses strive to develop artificial intelligence capabilities. The General Administration of Customs (GAC) reported a 45.2 percent year-on-year increase in overseas shipments of computers and related parts in the first seven months of the year.

China's trade surplus appears on track to match last year's $687 billion, reaching $687 billion by the end of July. The widening trade gap has raised concerns among European leaders, who are worried about Chinese exports overshadowing local manufacturers. China's Politburo recently advocated for a more "balanced" trade development.

Despite global pressures from the Middle East war and trade frictions between Beijing and Washington, China's shipments to the United States rose by 17 percent year-on-year, bringing the trade surplus with the U.S. to nearly $171 billion.