Key facts
- China's July exports grew 23.9% year-on-year, exceeding the 22.2% forecast.
- Imports increased by 27.5% in July, slightly below the expected 27.9% rise.
- Demand for AI goods and pre-tariff shipments bolstered export figures.
- Industrial production and fixed-asset investment are expected to have weakened in July.
- Retail sales maintained growth in July.
China's exports in July expanded by 23.9% year-on-year in U.S. dollar terms, exceeding the 22.2% forecast and demonstrating continued robust growth, albeit a slowdown from June's 27% surge. Imports rose 27.5%, slightly below the expected 27.9% increase. The stronger-than-anticipated export performance was bolstered by global demand for artificial intelligence-related goods and shipments made ahead of potential U.S. tariffs. However, domestic economic indicators suggest a more mixed picture, with industrial production and fixed-asset investment anticipated to have weakened in July, while retail sales maintained growth. Extreme weather events may have also impacted port operations and shipping during the month. The expected trade surplus for July is $107 billion.