Post by : Badri Ariffin

China's export growth eased in July compared with the previous month but remained stronger than expected, supported by continued global demand for high-tech electronics, electric vehicles, and industrial machinery.

New customs data released on Friday showed that China's trade surplus narrowed to $112.5 billion in July, down from $125.6 billion recorded in June.

Exports increased by nearly 24% in July compared with the same month last year. In June, exports had risen 27% year-on-year. Imports also continued to grow, climbing 27.5% from a year earlier, although this was lower than the 36% increase reported in June.

Port Disruptions Slowed Trade Activity

Analysts said typhoon-related disruptions at ports affected trade activity during the month, contributing to the slower pace of both exports and imports.

Julian Evans-Pritchard of Capital Economics said the overall trade picture remains strong despite the slight slowdown.

He said the value of both exports and imports stayed at high levels because of strong worldwide demand for electronics and environmentally friendly technology products.

Evans-Pritchard also noted that the Iran war disrupted aluminum shipments from the Middle East, leading China to increase its exports of the metal.

High-Tech Products Continue to Drive Export Growth

Trade figures indicate that China has increasingly shifted from producing mainly low-cost manufactured goods to supplying advanced machinery, equipment, and components used in modern industries.

Between January and July, exports of high-tech products rose by nearly 41% compared with the same period a year earlier.

Vehicle exports, including a large number of electric vehicles, increased by 55%, while exports of electronics and machinery climbed 26% during the same period.

Trade Surplus Supported by Strong Global Demand

Demand for Chinese technology products has remained strong despite higher tariffs and other trade restrictions introduced by the United States and several other countries.

This continued demand helped China record a trade surplus of nearly $1.2 trillion in 2025, the highest level on record.

Trade With the United States Slows

After U.S. President Donald Trump increased tariffs on imports from China and several other countries, trade between the two nations weakened.

During the first seven months of the year, China's exports to the United States increased by only 2.6% compared with a year earlier. Imports from the U.S. rose by 1.4% over the same period.

Trade issues and restrictions on China's access to advanced technology are expected to be major topics during Chinese President Xi Jinping's planned visit to the United States next month.

Government Rejects Claims of Overcapacity

China has been adjusting policies in major industries, including the automobile sector, to address intense price competition and weaker domestic demand.

Meanwhile, the United States and several other trading partners have argued that China's manufacturers are producing far more than domestic demand requires and are flooding global markets with exports.

However, the Chinese government rejected those claims in a report released last week, describing the idea of industrial overcapacity as a "myth."

A commentary published by the state-run Xinhua News Agency highlighted growing exports of air conditioners to Europe during an intense heat wave.

The commentary said European consumers were purchasing these products because they effectively met demand where local brands often could not.

Exports to Europe and Southeast Asia Continue to Grow

The latest customs figures showed that exports to the European Union increased by nearly 17% during the first seven months of the year.

Exports to Southeast Asia, now China's largest trading partner as a regional bloc, rose by 25% over the same period.

Energy and Rare Earth Trade Shows Mixed Performance

China's imports of crude oil by volume fell 13.2% during the first seven months of the year. However, the overall value of those imports increased slightly because of higher oil prices.

Natural gas imports declined by 3% in volume and 1.6% in dollar value.

Exports of strategically important rare earth minerals dropped 10% by volume during January to July, but their total value increased by 58%.

#Global News #China #Global Updates #World News