China’s June exports jump 27% as AI demand lifts trade

China’s exports accelerated in June, jumping 27% from a year earlier as demand linked to AI boosted trade in electronics, computing hardware and related products. The customs agency said the gain topped economists’ expectations and outpaced May’s 19.4% year-on-year increase.

Imports surged 36%, compared with May’s 27.4% year-on-year growth, while China’s trade surplus widened to $125.6 billion from $105.4 billion. Wang Jun, vice minister of China’s General Administration of Customs, said imports and exports tied to AI were robust, with trade in electronic components, computer spare parts and other computing hardware up nearly 57% to 5.1 trillion yuan ($760 billion) in the first half of the year.

Exports of vehicles, especially EVs, and tech products have helped offset weak domestic spending and investment tied to the property downturn. In January-June, exports climbed 17.6% from a year earlier and imports rose 26.6%.

Trade risks remain as the U.S. and Europe raise concerns over deficits and barriers increase. June exports to Southeast Asia surged nearly 35%, shipments to the European Union and Latin America rose more than 18% and 28%, respectively, and exports to the United States climbed almost 14%.