Nation's exports surprise amid AI groundwork buildout
The nation's exports beat expectations in July, remaining a key pillar of economic growth for the manufacturing powerhouse, as the global AI infrastructure buildout continued to power demand for high-tech goods. Exports expanded 23.9 percent year on year in US dollar terms, General Administration of Customs data showed on Friday, slowing from a 27 percent surge the previous month and compared…
In July, the nation's exports surpassed forecasts, solidifying their role as a cornerstone of economic expansion for this manufacturing giant, according to the General Administration of Customs. Exports surged 23.9 percent year on year in US dollar terms, although this marked a deceleration from the 27 percent increase observed in the previous month.
The growth projection stood at 22.2 percent based on a recent poll. Meanwhile, imports climbed 27.5 percent compared to the same period last year, down from June's 36 percent surge. In yuan terms, overall trade volume rose 19.2 percent. Notably, semiconductor exports nearly doubled in US dollar value from the previous year, while high-tech product exports expanded by 40.7 percent.
In late July, senior leaders emphasized the urgent need to shift from traditional growth engines to emerging sectors. Despite the economic expansion, which stood at 4.7 percent in the first half of the year, maintaining its trajectory to meet Beijing's official growth goal of 4.5 to 5 percent, second-quarter growth decelerated to 4.3 percent due to sluggish consumption and investment amid robust manufacturing and exports.
The trade surplus narrowed to US$112.5 billion, a drop from US$125.62 billion in June. Meanwhile, the European Union deliberates stricter regulations to mitigate its trade deficit with China, while China's relationship with the United States has shown signs of strain as both nations impose trade restrictions and other measures in the buildup to an anticipated leaders' summit in September.
US exports surged 17 percent, reaching US$41.9 billion, up from US$35.8 billion a year prior. Rare earth exports declined for the second consecutive month, falling by 17.3 percent from June, as summer lull dampened overseas demand. The world's foremost rare earth producer shipped out 4,224 tonnes of these crucial minerals, essential for electric vehicles, wind turbines, and defense applications.
This represented the lowest monthly figure since March, marking a 29.5 percent reduction compared to July 2025.
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