China’s Semiconductor Exports Double Amid AI Boom... June Exports Surge 27%

Advance Orders Surge Ahead of U.S. Tariff Hikes
Domestic Demand Remains Weak as Crude Oil Imports Plunge 41%

China's exports in June saw the largest increase since 2021, driven by the artificial intelligence (AI) investment boom and advance orders ahead of U.S. tariff hikes.

Cargo containers stacked at Shanghai Terminal, China, on the 14th. Photo by AP Yonhap News

According to a release from China's General Administration of Customs on the 14th, June exports in dollar terms rose by 27% year-on-year, far surpassing market expectations (18.2%). Imports also rose by 36%, exceeding forecasts, while the trade surplus reached 125.6 billion dollars (about 187.4 trillion won).

By product category, semiconductor exports—boosted by growing AI investments—reached 38 billion dollars, more than double from a year earlier. Exports to the United States also grew by approximately 14%. Exports to ASEAN (the Association of Southeast Asian Nations) rose by about 35%, while imports increased by 27%. Exports to the European Union climbed by 18.5%, with imports up by more than 9%.

Xiu Tianchen, Senior Economist at the Economist Intelligence Unit (EIU), explained that advance orders from the U.S. and ASEAN drove the export surge. U.S. economic media outlet CNBC reported that companies are preparing for additional tariffs stemming from President Donald Trump's Section 301 investigation under trade law. The comprehensive 10% tariff, temporarily imposed by the U.S. on global imports under Section 122 of the U.S. trade law, is set to expire on the 24th.

However, domestic demand in China remains sluggish. Consumption and private investment have yet to recover amid the ongoing real estate downturn. Crude oil imports amounted to 29.3 million tons, down 41% year-on-year, falling to the lowest level in nearly a decade.

Market attention is now shifting to the announcement of the second quarter gross domestic product (GDP), which is scheduled for the 16th. The second quarter economic growth rate is expected to slow to 4.5%, down from 5% in the first quarter. On the same day, the June industrial production figure is expected to show a 4.7% increase, while retail sales are projected to decrease by 0.1%.

Some observers are watching to see whether additional stimulus measures will be introduced at the Communist Party's Politburo meeting at the end of this month. However, experts believe that as long as exports remain robust and the growth rate does not slow significantly, a large-scale stimulus package is unlikely.

This content was produced with the assistance of AI translation services.