China's exports climbed more than forecast, growing 23.9% in July for their second straight month of gains above 20%, as global demand for AI-related electronics and other high-tech goods outweighed port disruptions from Typhoon Bavi. Imports advanced 27.5%, leaving a trade surplus of $112.5 billion and putting the country on track to beat last year's record.
The data, released Friday by the General Administration of Customs, shows the world's largest manufacturing nation absorbing shocks from Donald Trump's tariffs, the Middle East conflict, and severe weather. Typhoon Bavi was the strongest storm to hit Zhejiang province in nearly eight decades, forcing some of the country's busiest ports to suspend operations temporarily.
"Exports remain the main growth engine," said Lynn Song, chief economist for Greater China at ING Bank NV in Hong Kong. "This year's K-shaped divergence in China looks like it will continue in the months ahead as external demand is clearly much stronger than domestic demand."
AI demand keeps exports climbing
Shipments of chips and computers kept soaring in July, climbing 117% and 67% from a year earlier, respectively. Overseas sales of cars jumped 60%, ships surged 92%, and growth for general machinery accelerated to 31% from 15% in June.
Prices are inflating the trade numbers. As trillions of dollars pour into AI, a shortage of semiconductors and other electronics has sent some chip prices soaring as much as 700% over the past year. Export prices rose 8% from a year earlier in June, the third straight monthly increase after nearly three years of declines. Import prices surged 25% in June, the fastest increase since data began in 2006. In volume terms, imports grew just 4% in June.
Trade tensions rise with the surplus
The boom is widening a divide within China's economy and reducing the need for Chinese officials to step up support to domestic consumers despite weak demand at home. At the same time, Chinese companies' growing dominance across global value chains has raised tensions with Europe and the US, particularly in carmaking and hardware for data centers.
Despite those tensions, China's trade surplus with the European Union reached a fresh record of $33.8 billion in July. China also continued to curb crude oil imports, though the volume decline narrowed to 24% from a year earlier, versus 41% in June.
"Stepping back, exports remain very strong, with the slight deterioration last month partly due to temporary disruptions to port operations from recent typhoons," said Julian Evans-Pritchard, head of China economics at Capital Economics.
Why this matters for sales professionals
The AI investment supercycle is reshaping global trade flows and pricing. Chip prices up 700% mean procurement costs for hardware-dependent products are shifting fast, and sales teams in tech, automotive, and shipping should watch these export numbers as a leading indicator of demand and price pressure.
For sales professionals, the takeaway is concrete: AI-driven demand is creating winners in semiconductors, computers, and EVs, while price inflation distorts volume growth. Understanding which categories are surging, and why prices are moving, helps in forecasting customer budgets and negotiating deals. Job-specific training can help sales teams build that understanding.
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