Key facts
- China's June exports rose 27% year-on-year in dollar terms, exceeding forecasts.
- China's June imports increased 36% year-on-year, also surpassing expectations.
- Strong demand for AI-related technology and preemptive shipments to the U.S. ahead of tariffs boosted exports.
- Analysts anticipate further policy support, particularly fiscal stimulus, to counter weak domestic demand.
- China's trade surplus widened to $125.6 billion in June.
China's economy demonstrated surprising strength in its trade figures for June, with exports climbing 27% and imports jumping 36% year-on-year in dollar terms, significantly exceeding economists' forecasts. This performance outpaced April's 19.4% export growth and May's 27.4% import growth, with the latter reaching a five-year high. The robust export figures were bolstered by strong global demand for AI-related technology products and a strategic rush by Chinese manufacturers to ship goods to the U.S. before potential new tariffs are imposed. Despite these positive trade numbers, concerns persist about China's domestic economic health, including weak consumer demand and a prolonged property sector slump. Analysts anticipate that the government may introduce further stimulus measures, particularly fiscal support, to bolster growth, especially following an expected late-July Politburo meeting. China's trade surplus widened to $125.6 billion in June from $105.4 billion in May. The country is set to release its second-quarter GDP data, alongside retail sales and industrial production figures, on July 15.