China’s exports and imports surged in July

China's exports and imports both surged in July, official data revealed, as the manufacturing titan capitalizes on a global AI boom driving overseas demand for its tech products. According to the General Administration of Customs (GAC), exports surged 23.9% year-on-year, while imports increased a more modest 27.5%, marking a notable drop from the 36% surge observed in June.

Last year, China achieved a record trade surplus of nearly US$1.2 trillion, which has been instrumental in stabilizing its manufacturing sector amid a prolonged decline in domestic consumption.

The surge in exports has been particularly pronounced this year, driven by heightened demand for Chinese data-processing equipment and associated components. As companies scramble to bolster their artificial intelligence capabilities, shipments of computers and related parts to foreign markets have skyrocketed, with year-on-year growth reaching 45.2% in the first seven months of the year.

Despite the global trading system facing considerable challenges from the Middle East conflict and ongoing trade frictions between Beijing and Washington, China's shipments to the US rose 17% year-on-year, underscoring the persistence of the trade war despite recent efforts to mitigate tensions. The latest figures come in the wake of a recent escalation in trade tensions, following Washington's imposition of sanctions over labor and national security concerns, leading China to restrict drone exports to the US and blacklist six firms.