Despite Washington and Beijing locking horns many times this year, China’s economy has remained mostly unshaken.
According to data released on Thursday, the nation's exports surged 7.2% in July from a year earlier, while its imports grew at the fastest pace in a year.
This came as businesses rushed to take advantage of a lull in President Donald Trump’s trade war with Beijing, after both sides agreed to temporarily reduce tariffs until 12 August. The US tariff on Chinese goods had previously reached 145%.
Analysts nonetheless added that the improvement looked particularly positive because exports were weak in July 2024.
China redirects trade flows to Africa
Exports to the United States sank nearly 22% year-on-year, while imports from America fell almost 19%. But exports to Africa and Southeast Asia surged at double-digit rates as Chinese businesses diverted sales to other markets.
China has become Africa’s largest trading partner, with bilateral trade worth around €141bn in the first half of this year, according to the Chinese General Administration of Customs.
For now, US tariffs on Chinese goods are being considered separately from the new higher tariffs that took effect today for dozens of US trading partners.
China’s global trade surplus for 2025 rose to $683.5bn or around €586bn by the end of July, nearly a third higher than the surplus for the same period last year. The data showed that China’s surplus in July was €84.3bn, while its exports to the United States were €20.3bn more than its imports of US goods.
“With the temporary boost to demand from the US-China trade truce already fading and tariffs on shipments rerouted via other countries now rising, exports look set to remain under pressure in the near term,” Zichun Huang of Capital Economics said in a report.
The economy is holding up, for now
Economists had been expecting China's dollar-denominated exports to grow less than 6% in annual terms in July, on a par with June's 5.8% rate.
But improved trade with the rest of the world has helped offset the impact of Trump's trade war. Imports rose 4.1% last month from a year earlier, the most since July 2024, with higher shipments of crude oil, copper and soybeans.
China's exports of rare earths that are vital for making many high-tech and other products and Trump has made ensuring US access to such vital minerals a key part of trade negotiations, leading Beijing to promise to loosen some controls.
In July, China's exports of rare earths fell 17.6%, compared with a nearly 50% fall the month before. From January to July, its rare earths exports fell 24.2% in dollar terms, although they rose more than 13% by volume.
Exports of vehicles, fertiliser, ships and auto parts also saw strong growth.
