China’s exports defied trade headwinds in July, rising by 7.2% year-on-year to $321.8 billion, surpassing both the 5.8% growth recorded in June and market expectations. The surge was powered by strong demand from Europe, Africa, Latin America, and Southeast Asia, offsetting a sharp 21.7% drop in shipments to the United States due to ongoing tariff pressures.
Chip exports led the growth, surging 29.2% year-on-year as Chinese manufacturers rushed to ship products ahead of potential new US tariffs. Exports of machinery and electrical products also grew by 8%, while vehicle exports jumped 25.5%, reaching 694,000 units in July.
China’s exports to the EU rose by 9.2%, and shipments to Southeast Asia increased 16.6%. Notably, exports to Africa soared 42.4%, while Latin America saw a 7.7% rise. Countries participating in the Belt and Road Initiative accounted for 50.4% of China’s total exports.
On the import side, China saw a 4.1% increase, possibly indicating improving domestic demand. Imports of crude oil rose 11.5%, totaling 47.2 million tonnes.
Despite this strong showing, analysts warn that China’s export momentum could slow due to rising US-led tariffs and the potential collapse of the current trade truce. The uncertainty remains, especially as the US pressures trade partners to curb transshipments from China and threatens further punitive actions.