China’s exports jumped more than expected in June as strong demand for artificial intelligence (AI)-related products and a rush by manufacturers to ship goods to the US ahead of potential tariff increases supported trade growth despite global uncertainties.
Exports rose 27% year-on-year in US dollar terms, customs data showed on Tuesday, exceeding economists’ expectations of an 18.2% increase and marking the strongest performance in four months. The figure also accelerated from the 19.4% growth recorded in May.
Imports also strengthened, rising 36% year-on-year in June compared with a 27.4% increase in May, reaching the fastest growth rate in five years. China’s trade surplus widened to US$125.6 billion during the month from US$105.4 billion previously.
The stronger trade performance was supported by growing global investment in AI technology, which provided a boost for Chinese manufacturers despite pressure from the prolonged property downturn and uncertainty surrounding the Iran conflict.
Chinese exporters also benefited from US retailers bringing forward orders by four to six weeks to prepare for Black Friday and Christmas sales ahead of possible tariff hikes later this year.
However, economists warned that China’s growth momentum could face challenges if external demand weakens, as domestic consumption remains relatively soft. The country is scheduled to release its second-quarter gross domestic product data on Wednesday, with markets watching for signs of further policy support.
