China’s exports rose by 27% year on year in June to $412.39 billion, equivalent to approximately CZK 8.8 trillion, marking the strongest increase since 2021. Imports grew by 36% to $286.76 billion. Growth in both categories exceeded analysts’ expectations and was supported by the global artificial intelligence boom, which boosted demand for chips and computing equipment while also driving semiconductor prices higher.
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Semiconductor Boom Strengthens China’s Trade Balance
Strong growth in exports and imports continued in the world’s second-largest economy despite disruptions to global trade caused by the conflict in the Middle East. Analysts surveyed by Reuters had expected exports to rise by 18.2% and imports by 24%. China’s trade surplus therefore increased to $125.8 billion in June from $105.4 billion in May.
The value of semiconductor exports more than doubled compared with the same month last year and increased by $2.7 billion from May. Exports of data-processing equipment rose by 53.1% year on year. However, Julian Evans-Pritchard of Capital Economics noted that the increase in trade value was largely driven by higher prices caused by a shortage of memory chips, while the actual volume of semiconductor exports declined year on year. Vehicle exports rose by 69.6%, mainly due to strong demand for Chinese electric cars.
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Trade Surpluses Add to Tensions With the United States and Europe
Exports to the United States increased by 13.9% to $43.5 billion, while China’s trade surplus with the US reached $28.9 billion. China recorded a surplus of $32.9 billion with the European Union, up from $30.7 billion in May. According to Zhiwei Zhang of Pinpoint Asset Management, the figures confirm the competitiveness of Chinese industry but also increase pressure on trade relations with key partners.
Exports of rare earth metals fell by 34% in June and declined by 6.4% year on year in the first half of the year after Beijing tightened export restrictions. China accounts for roughly two-thirds of global production of these strategic raw materials. Oil imports also dropped by 41.3% to their lowest level in nearly a decade due to weak domestic demand, lower refinery utilisation and restrictions on exports of refined petroleum products.
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Source: ČTK
