China’s exports jumped in June amid strong demand for semiconductors that support the global AI boom and for automotive shipments. The increase highlights Chinese manufacturers’ growing dependence on foreign markets as policymakers in the world’s second-largest economy continue efforts to stimulate domestic consumption.
The better-than-anticipated trade figures keep China on course for a second consecutive year with a trade surplus exceeding $1 trillion, as factories maintain overseas sales momentum despite weaker growth in major economies and ongoing trade tensions with Washington.
Vehicle exports surpass 1 million units for the first time in June
China’s exports rose 27 percent year-on-year in U.S. dollar terms in June, according to customs data released on Tuesday, marking their strongest performance in four months. The increase exceeded both May’s 19.4 percent growth and economists’ expectations of an 18.2 percent gain.
Imports also recorded a sharp acceleration, climbing 36 percent compared with a 27.4 percent increase in the previous month. The rise marked the fastest growth in five years and surpassed forecasts for a 24 percent increase in June.
China’s monthly vehicle exports surpassed 1 million units for the first time in June, according to the data, a development that could intensify trade tensions with partners including the European Union. During the month, China also exported $32 billion worth of integrated circuits.
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China’s trade surplus widens to $125.6 billion in June
Chinese equities reacted positively to the trade figures, with the blue-chip CSI300 index gaining 2 percent at the close.
The country’s trade surplus widened to $125.6 billion in June, up from $105.4 billion in May. China’s cumulative trade surplus for the year reached $575.98 billion, compared with $585.96 billion during the same period last year, even as imports have outpaced export growth for several months.
As policymakers continue to struggle with a prolonged property sector downturn that has weakened domestic demand, Chinese manufacturers are increasingly relying on overseas markets as one of the few remaining avenues for growth.
The share of annual exports in total manufacturing sales reached 24 percent in the first four months of this year, according to a recent report by consultancy Gavekal Dragonomics, marking the highest level since China joined the World Trade Organization in 2001. The ratio stood at 18.3 percent in 2019 before rising to 22.3 percent last year.
