China exports outperform forecasts as chips and EVs drive growth

Washington DC [US], July 15: China's exports surged more than expected last month, with official data on Tuesday showing that the global AI boom helped fuel demand for chips and computing equipment from the world's second-largest economy.
The figures came despite global trade disruptions caused by the US-Israeli war on Iran, providing a much-needed boost to China, which is increasingly reliant on exports to fuel growth. Overseas shipments rose 27.0 percent year-on-year, beating the 19.0 percent forecast in a Bloomberg survey of economists.
The General Administration of Customs data also showed imports soared 36.0 percent, easily outstripping the 26.1 percent estimated in the Bloomberg survey, and well up from the 27.4 percent jump seen in May."Trade values took another big leg up in June. This predominantly reflects the recent surge in semiconductor prices on the back of the AI boom," Julian Evans-Pritchard, of Capital Economics, said in a note.The value of China's semiconductor exports more than doubled from the same month a year ago and rose $2.7 billion from May, while data processing equipment shipments also rose 53.1 percent from a year earlier.But that expansion was "entirely a price story caused by the ongoing shortage of memory chips", Evans-Pritchard said, noting that the volume of semiconductor exports actually fell year-on-year in June. "Surging semiconductor prices are playing a key role in pushing up import values," rather than domestic consumption surging, he said.Automobile exports jumped 69.6 percent on-year, reflecting strong demand for Chinese electric vehicles, he added. Shipments to the United States rose 13.9 percent to $43.5 billion, putting China's trade surplus with its superpower rival at $28.9 billion.Ties between Washington and Beijing have stabilised since US President Donald Trump visited Beijing in May, but the persistent trade imbalance remains a source of friction between the two.
China is also locked in a simmering trade feud with the European Union, with which it recorded a trade surplus of $32.9 billion in June, a rise from $30.7 billion in May.
Source: Qatar Tribune