July exports rose 23% year-on-year, exceeding expectations, as AI-linked demand offsets domestic weakness and US tariff pressures.
China’s exports climbed 23% year-on-year in July, surpassing the 22% forecast, though growth slowed from June’s 27% pace. The print highlights resilience in AI-driven demand, countering soft domestic consumption and the weakest quarterly GDP growth since late 2022.
Imports rose 27.5%, slightly below expectations, decelerating from June’s 36% jump. The trade surplus, while narrower, keeps Beijing’s rebalancing discussions with trading partners in focus amid escalating tariff and export restrictions.
Renewed US-China friction poses modest risks to risk sentiment, potentially pressuring commodity-linked currencies like the Australian dollar if tensions escalate further.