Data released by the General Administration of Customs on August 7th reveals that China's July exports (in USD terms) surged 23.9% year-on-year, following a 27% increase in the previous period. Imports rose 27.5%, down from a 36% increase in the prior month, resulting in a trade surplus of $112.5 billion, compared to $125.62 billion in June.

In RMB terms, total imports and exports for July reached 4.66 trillion yuan, maintaining a level above 4 trillion yuan for five consecutive months, with a year-on-year growth of 19.2%. Exports stood at 2.71 trillion yuan, growing 17.8%, while imports reached 1.95 trillion yuan, up 21.2%. The trade surplus was 767.07 billion yuan, compared to 859.05 billion yuan in the previous month.

The standout feature of this month's data was the robust performance of high-tech exports. Semiconductor exports by value nearly doubled year-on-year, and overall high-tech product exports expanded by 40.7%. This surge is driven by sustained demand from the global boom in artificial intelligence infrastructure construction.

Additionally, the demand for renewable energy products, spurred by the global energy transition, has become a significant driver of China's export growth.

The AI Construction Boom Continues to Boost Exports

The large-scale global construction of AI infrastructure has become a key pillar supporting China's exports. The General Administration of Customs reported that in July, exports of high-tech products, including industrial robots and 3D printers, grew by over 50% year-on-year, outpacing the 39% growth rate seen in the first half of the year. These products contributed nearly 60% of the export increase in July. Furthermore, exports of green and low-carbon products like electric vehicles and lithium batteries have maintained double-digit growth for 17 consecutive months.

Sharp price increases in chips and commodities have also provided a boost to trade data. As global AI investment reaches trillions of dollars, supply shortages of electronic components like semiconductors have driven up chip prices by as much as 700% over the past year for some components. Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, stated that China's export engine is expected to remain strong in the third quarter. This assessment is based on the fact that the global technology investment cycle has not yet peaked and external demand remains resilient.

Furthermore, proactive actions by Chinese exporters, often described as a "rush to export," have been an important factor supporting July's data. This behavior has been evident in previous months and partially explains why export growth has consistently exceeded expectations in the first half of the year.

Exports Grow 14% in the First Seven Months

Statistics from the General Administration of Customs also showed that in the first seven months of this year, China's total goods trade imports and exports reached 30.13 trillion yuan, a year-on-year increase of 17.3%, continuing a strong growth trend. Of this, exports totaled 17.44 trillion yuan, up 14%, while imports reached 12.69 trillion yuan, an increase of 22%.

In the first seven months of this year, China exported 11.12 trillion yuan in mechanical and electrical products, a 21.2% increase, accounting for 63.8% of total exports, a rise of 3.8 percentage points compared to the same period last year. Among these:

Green and low-carbon products like electric vehicles, lithium batteries, and wind power generators saw growth of 71.2%, 35.8%, and 34.8%, respectively.

Exports of 3D printers, industrial robots, and ships reached 11.2 billion yuan, 7.34 billion yuan, and 268.14 billion yuan, respectively, with growth rates of 110%, 13.2%, and 32.7%.

On the import side, China's bulk commodity imports increased by 3% in volume in the first seven months, with metal ore imports rising by 8.2%. During the same period, imports of mechanical and electrical products reached 5.31 trillion yuan, a 29.7% increase, accounting for 41.9% of total imports.

By region, in the first seven months, China's trade with ASEAN, the EU, Latin America, and Africa grew by 20%, 9.5%, 15.4%, and 18.9%, respectively. Trade with countries participating in the Belt and Road Initiative reached 15.36 trillion yuan, up 15.5%. Trade with other APEC economies totaled 18.03 trillion yuan, an increase of 21%.

In the first seven months, China's trade with over 180 countries and regions continued to grow. Specifically, trade with ASEAN and Africa grew by nearly 20%, and trade with the US has increased for four consecutive months.

In the first seven months of this year, private enterprises in China achieved imports and exports of 17.16 trillion yuan, a 17.2% increase, accounting for 56.9% of the total, maintaining their position as the largest foreign trade entity. During the same period, foreign-invested enterprises saw imports and exports of 8.78 trillion yuan, up 17.6%, while state-owned enterprises recorded 4.14 trillion yuan, a 17.3% increase.