World

China's exports slow slightly despite big tech demand

By AAP Newswire

Aug 7, 2026

Workers install printed circuit board at a factory in Fuyang, China — China has fully transitioned to supplying vital machinery and components for advanced manufacturing. -AP

China's exports slowed slightly in July from the month before despite robust demand for high-tech electronics and vehicles.

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Customs data released on Friday showed China's trade surplus narrowed to $US112.5 billion ($A159.9 billion) from $US125.6 billion in June.

Exports rose nearly 24 per cent in July from a year earlier, compared with a 27 per cent increase in June.

Imports climbed 27.5 per cent year-on-year, but that was lower than June's jump of 36 per cent.

Disruptions to port operations due to typhoons helped to slow trade, analysts said.

"The boom in Chinese trade slowed a touch in July but the big picture is that export and import values remain elevated, helped by soaring global demand for electronics and green tech products," Julian Evans-Pritchard of Capital Economics said in a report.

The Iran war interfered with shipments of aluminium from the Middle East, leading to an increase in Chinese exports of the metal, he noted.

Trade data shows China has fully transitioned from providing mostly low-cost manufacturing to supplying vital machinery and components for advanced manufacturing.

Exports of high-tech items surged nearly 41 per cent in January-July from the same period the year before, while shipments of vehicles jumped 55 per cent and overall exports of electronics and machinery rose 26 per cent.

China's exports to the US climbed just 2.6 per cent year-on-year in the first seven months of 2026, while imports from the US grew 1.4 per cent.

Exports to the European Union were up nearly 17 per cent, while exports to Southeast Asia, which as a bloc is now China's biggest trading partner, surged 25 per cent.