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China exports grew 23.9% year over year in July, supporting trade
The trade surplus narrowed to $112.5B from $125.6B, even as semiconductor and other high-tech shipments posted sharp gains.
China’s exports rose 23.9% year over year in July in US dollar terms, even as growth eased from June’s faster pace, according to Action Forex. The increase also beat expectations for 22.2%, with exports remaining a key pillar for China’s economy as domestic consumption and investment stayed subdued.
Imports also stayed strong, but at a slower rate. Action Forex said imports rose 27.5% year over year after 36.0% growth in June, which contributed to the trade surplus narrowing to $112.5B from $125.6B.
High-tech manufacturing continued to drive the export performance. Semiconductor exports nearly doubled over the first seven months of the year, overall high-tech exports jumped 40.7%, and chip exports rose 117% year over year in July, alongside strength in cars, electric vehicles, batteries and other advanced manufacturing.
Action Forex also noted that the export strength was increasingly uneven across industries and that some of the US-related demand may reflect front-loading shipments ahead of higher tariffs. Exports to the United States rose 17% year over year in July, while exports to the EU increased 16%, and traditional segments like ceramic shipments and toy exports fell, signaling exposure to both the global technology cycle and further protectionist measures.