China's trade beat expectations in June, boosted by AI boom

- China's export growth beat expectations in June, as strong demand for semiconductors and manufacturers rushing to ship goods to the United States ahead of possible new tariffs offset broader concerns about a war with Iran and weak global demand.

The stronger-than-expected trade performance indicates that Chinese manufacturers continued to maintain sales despite slowing growth in major economies and uncertainty surrounding trade relations with Washington. Strong demand for AI-related technology products, accelerated shipments to the United States, and competitive pricing by Chinese exporters helped bolster overseas sales.

Customs data released on Tuesday showed exports up 27 percent from a year ago in US dollar terms, their best performance in four months, exceeding the 19.4 percent increase recorded in May and also experts' expectations of an 18.2 percent rise.

Imports jumped 36 percent, compared to a 27.4 percent increase in the previous month, marking their highest level in five years. Experts had predicted 24 percent growth for June.

Global investment in artificial intelligence provides important support for manufacturing companies in China’s roughly $20 trillion economy, even as turmoil from conflict in the Middle East and a prolonged slump in the real estate market continue to weigh on broader growth.