China’s exports and imports recorded strong growth in July as rising global demand for artificial intelligence-related technology products boosted overseas orders for Chinese manufacturers, according to official customs data released on Friday.
The General Administration of Customs (GAC) reported that exports rose 23.9 per cent year-on-year in July, exceeding the 23.0 per cent growth forecast by Bloomberg.
Shipments of computers and related components increased 45.2 per cent during the first seven months of 2026, reflecting growing international demand for data-processing equipment and other products linked to the rapid expansion of AI infrastructure.
Analysts say the technology boom is helping China’s manufacturing sector at a time when domestic consumption remains weak.
Julian Evans-Pritchard of Capital Economics said export and import values remained high because of strong global demand for electronics and green technology products.
China’s trade surplus reached $687 billion by the end of July, keeping the country on course to approach the nearly $1.2 trillion trade surplus recorded in 2025.
The large surplus has continued to attract scrutiny from trading partners, particularly in Europe, where policymakers have expressed concern that increased Chinese exports could put pressure on local manufacturers.
Beijing has repeatedly denied deliberately pursuing a trade-surplus strategy, while the Communist Party’s Politburo recently called for more balanced trade development.
Imports also grew strongly, rising 27.5 per cent in July. However, the increase was slower than the 36 per cent surge recorded in June and below Bloomberg’s forecast of 29.5 per cent.
The trade expansion comes despite ongoing geopolitical and economic pressures, including the conflict in the Middle East and continuing trade tensions between China and the United States.
Chinese exports to the United States increased 17 per cent year-on-year in July, while China’s trade surplus with the U.S. reached nearly $171 billion in the first seven months of 2026.
The latest figures were released shortly after a new escalation in U.S.-China trade tensions. Following sanctions imposed by Washington over forced labour and national security concerns, China announced restrictions on drone exports to the United States and placed six companies on its blacklist.
Although the two countries agreed to a temporary easing of tensions after a meeting between President Xi Jinping and U.S. President Donald Trump in October 2025, analysts expect trade negotiations to remain intense in the coming months.
The relationship is expected to face further scrutiny ahead of Xi Jinping’s scheduled state visit to the United States in late September 2026.
