China's exports and imports maintained a strong growth pace in July, though they moderated slightly compared to June. Despite this moderation, exports rose more than expected, expanding 23.9 percent year on year. During the same period, the country's trade surplus narrowed.
The growth was driven by a global investment supercycle in artificial intelligence and persistently strong demand for high-tech components and electronics. Specifically, chip shipments almost doubled, while strong demand for electronics, electric vehicles, and machinery helped exports beat forecasts. This demand helped offset trade disruptions caused by extreme weather.
Chinese factories continue to find eager buyers abroad even as the domestic economy faces challenges. Weak consumer spending and a prolonged property slump continue to weigh on growth at home.