China’s exports and imports recorded strong growth in July as rising global demand for technology products and artificial intelligence infrastructure boosted the country’s manufacturing sector.
Data released on Friday by the General Administration of Customs showed that exports increased by 23.9 per cent compared with the same period last year, slightly exceeding analysts’ projections of 23 per cent.
Imports also rose by 27.5 per cent year-on-year, although the figure fell short of market expectations of 29.5 per cent.
The latest figures underscore China’s continued dominance in global manufacturing despite persistent concerns over weak domestic consumption and increasing trade tensions with major economies.
According to the data, overseas shipments of computers and related components rose by 45.2 per cent during the first seven months of the year, driven largely by the rapid expansion of artificial intelligence technologies and increased investment in data-processing infrastructure.
China’s trade surplus reached 687 billion dollars by the end of July, putting the country on course to match the record surplus of nearly 1.2 trillion dollars recorded last year.
Analysts said the growth was fuelled by robust international demand for electronics, renewable energy technology and other advanced products.
Julian Evans-Pritchard of Capital Economics said export and import values remained elevated because of increased global demand for electronics and green technology products.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, also noted that export growth continued to support China’s economy despite lingering challenges.
The growing trade surplus has, however, intensified concerns in Europe and other parts of the world, where governments fear that an influx of Chinese products could place additional pressure on local industries.
Chinese authorities have repeatedly denied deliberately pursuing policies aimed at widening the country’s trade surplus.
Meanwhile, trade relations between Beijing and Washington remain strained despite ongoing diplomatic engagements.
Official figures showed that Chinese exports to the United States increased by 17 per cent in July, bringing China’s trade surplus with the United States to nearly 171 billion dollars since the beginning of the year.
The latest figures come amid renewed tensions between the two countries following sanctions imposed by the United States over allegations relating to forced labour and national security concerns.
In response, China announced restrictions on drone exports to the United States and imposed sanctions on six American companies.
The relationship between the world’s two largest economies is expected to remain under close scrutiny ahead of Chinese President Xi Jinping’s planned state visit to the United States later this year.