China's merchandise trade remained resilient in July, with both exports and imports registering strong double-digit growth despite moderating from the previous month and facing disruptions from adverse weather conditions.

Exports increased 23.9% year-on-year in July, slightly above market expectations of 23% but lower than the 27% growth recorded in June. Imports rose 27.5% during the month, resulting in a trade surplus of approximately $112.5 billion.

The continued strength in China's external trade was largely driven by robust global demand for artificial intelligence-related electronics, semiconductors, data center hardware, electric vehicles, and other advanced technology products. Rising global investment in AI infrastructure has supported export growth, helping offset broader economic headwinds and weaker domestic demand.

However, the widening trade surplus also underscores the growing imbalance within China's economy, where sluggish consumer demand continues to weigh on domestic activity. The strength in exports has reduced immediate pressure on policymakers to introduce additional stimulus measures aimed at boosting household consumption.

China's expanding presence across global manufacturing supply chains has also intensified trade tensions with major economies, particularly the United States and Europe. Areas such as electric vehicles, semiconductor-related equipment, and data center hardware have remained key points of concern as Chinese manufacturers continue to strengthen their global market share.

Trade values were also supported by higher prices for semiconductors, crude oil, and industrial metals. A surge in global AI investment has created shortages of chips and electronic components, with prices for certain semiconductor products reportedly increasing significantly over the past year.

Official data also showed export prices rose 8% year-on-year in June, marking the third consecutive month of gains after nearly three years of declines. Import prices increased 25% during the same period, representing the fastest growth since comparable records began in 2006.

Meanwhile, severe weather conditions affected logistics during July. Heavy rainfall associated with Typhoon Bavi disrupted operations across eastern China, forcing temporary closures at several major ports and creating short-term interruptions to trade activity. Despite these disruptions, China's external trade continued to demonstrate strong momentum.