China’s export sector delivered stronger-than-expected growth in July despite persistent friction with Washington, as trade flows pivoted toward Africa and Southeast Asia.
Official data showed exports rising 7.2% year-on-year, outpacing forecasts of under 6%, while imports grew 4.1%, the fastest pace since July 2024. The gains came during a temporary tariff reprieve, with the US agreeing to scale back levies that had peaked at 145% on Chinese goods until August 12.
Trade with the US continued to weaken, with exports down nearly 22% and imports off almost 19% from a year earlier. In contrast, shipments to Africa and Southeast Asia posted double-digit gains.
China, now Africa’s largest trading partner, recorded $152 billion in bilateral trade with the continent in the first half of 2025. The reorientation helped lift China’s global trade surplus to $683.5 billion by the end of July, up nearly a third from the same period last year, with a monthly surplus of $92 billion.
What Does This Mean for Me?
Key growth areas included vehicles, fertiliser, ships, and auto parts. Rare earth exports, a flashpoint in trade talks due to their role in high-tech manufacturing, fell 17.6% in July after a nearly 50% drop in June, bringing the year-to-date decline to 24.2% in value terms but showing a 13% increase by volume. Imports of crude oil, copper, and soybeans also climbed.
For now, diversified export markets are offsetting losses from the US, helping to steady the economy in the face of ongoing geopolitical and trade headwinds.