China’s June exports surge 27% as AI boom drives demand
11 reported
China's exports accelerated in June, jumping 27% from a year earlier, driven partly by the boom in artificial intelligence, according to the customs agency. The increase was much better than economists had expected, following a 19.4% year-on-year rise in May. Imports surged 36% in June, better than May’s 27.4% growth, with analysts attributing the expansion in part to the Iran war driving up import costs. China recorded a trade surplus of $125.6 billion in June, widening from $105.4 billion in the previous month. Analysts noted that the surge in semiconductor prices due to the AI boom contributed significantly, but foreign demand for Chinese goods remains robust. Exports of vehicles, especially EVs, and other tech-related products have boomed as rapid AI adoption increases the need for semiconductors and electronic equipment. The strength in export manufacturing has helped offset prolonged weakness in domestic spending and investment due to a downturn in the property industry.
What’s reported
China's June exports jumped 27% year-on-year, according to the customs agency.
Exports rose 19.4% year-on-year in May.
Imports surged 36% in June, compared to 27.4% growth in May.
China recorded a trade surplus of $125.6 billion in June, up from $105.4 billion in May.
Analysts attributed the import expansion in part to the Iran war driving up import costs.
Exports to Southeast Asia surged nearly 35% year-on-year in June.
Exports to the European Union increased more than 18%, and to Latin America more than 28%.
Exports to the United States climbed almost 14% from a year earlier.
In January-June, exports climbed 17.6% and imports jumped 26.6%.
China set an annual growth target of 4.5% to 5% for this year.
The International Monetary Fund raised China’s annual growth forecast to 4.6% for this year.
Key figures
Julian Evans-Pritchard, head of China Economics at Capital Economics
Wei Li, Head of Multi-Asset Investments at BNP Paribas Securities (China)
President Donald Trump (mentioned in context of tariffs)
Sources: abcnews.com
