China’s exports jump 23% in July, beating estimates; imports cool

China’s exports rose more than expected in July, though growth eased from June’s blistering pace, with global demand for high-tech components helping absorb the country’s goods.

Exports grew 23% in U.S. dollar terms in July from a year earlier, official customs data showed Friday, topping Reuters-polled analysts’ forecast for a 22.2% growth. That slowed from June’s 27% surge, which was the fastest pace since October 2021.

Imports rose 27.5% last month, just shy of Reuters estimates of 27.9% in a Reuters poll, slowing from June’s 36% jump — the quickest in five years.

The trade surplus came in at $112.5 billion, exceeding analysts” estimates of about $107 billion, while narrowing from $125.6 billion in June, customs data showed.

China’s export engine is likely to remain strong in the third quarter, said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.

Beijing’s massive trade surplus, which exceeded $1 trillion last year, has become a standing grievance for its trading partners, including the U.S. and the European Union, where officials have pressed China to rebalance its economy toward boosting consumption.

“I expect intense negotiations between China and the major trading partners in the coming months on what can be done to make trade more balanced,” said Zhang, ahead of the expected U.S.-China summit in September and the EU-China meeting on economic relations in October.

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