Media365
China’s exports expanded at their fastest pace in nearly five years in June, powered by soaring global demand for artificial intelligence (AI) hardware and a rush by exporters to ship goods before fresh US tariffs come into effect, underscoring the resilience of the world’s second-largest economy despite geopolitical tensions.
Official customs data showed exports jumped 27 per cent year-on-year to US$412.4 billion, marking the strongest growth since October 2021 and significantly exceeding market expectations. Imports rose an even stronger 36 per cent to US$286.8 billion, the fastest increase since June 2021, taking China’s trade surplus to US$125.6 billion during the month.
The surge was largely driven by booming global investment in AI infrastructure, including semiconductors, data centres and advanced electronics. Integrated circuit exports soared nearly 122 per cent in value terms, while imports of microchips climbed more than 72 per cent, reflecting robust demand across the global technology supply chain. High-tech product exports rose over 52.2 per cent, with mechanical and electrical products also registering strong growth.
Trade with key markets also strengthened. Shipments to the United States increased around 14 per cent, while exports to ASEAN countries climbed 34.6 per cent and exports to the European Union rose 18.5 per cent, highlighting broad-based external demand.
Economists attributed part of the export strength to companies accelerating shipments ahead of the July 24 deadline, when temporary US tariff measures are expected to expire and could be replaced with tougher duties under Section 301. Manufacturers have increased production to front-load exports before any additional trade restrictions take effect.
However, the data also revealed signs of uneven domestic demand. While imports of technology products remained strong, China’s crude oil imports fell 41 per cent year-on-year to their lowest level in nearly a decade, suggesting continued weakness in parts of the economy despite the export boom.
Analysts expect exports to remain resilient in the second half of 2026, supported by sustained global demand for AI-related products. At the same time, they caution that escalating trade tensions with the United States and Europe, along with geopolitical uncertainties, could weigh on future export momentum.
