China Beats Forecasts with 7.2% Export Growth in July 2025

China’s exports surged by 7.2% year over year in July 2025, reaching $321.8 billion and exceeding market expectations of 5.4% growth. This marked the fastest pace of export shipments since April, showcasing strong resilience despite ongoing trade tensions with the United States.

The surge occurred amid a tariff truce between Beijing and Washington, scheduled to expire on August 12, providing a temporary easing of trade pressures.

Despite a sharp 21.7% decline in shipments to the US, China successfully diversified its export markets. Exports rose to Japan by 2.4%, South Korea by 4.6%, Taiwan by 19.2%, Australia by 14.8%, the European Union by 9.2%, and ASEAN countries by 16.6%. Chip exports stood out with nearly 30% growth year-over-year, helping to offset losses elsewhere.

Strong Export Growth Despite US Trade Tensions

The temporary tariff truce initiated in May significantly eased duties. US tariffs on Chinese goods dropped from 145% to roughly 30%, while China’s counter-tariffs fell from 125% to 10%. Ongoing negotiations have been described as "very positive," though the August 12 deadline remains uncertain.

Did you know?
China’s rare earth magnet exports to the US surged 660% month-on-month in June 2025 after export restrictions were eased through trade agreements.

Diversification of Markets and Products

China’s strategy to offset declining US shipments involved boosting exports to key Asia-Pacific and European markets. Especially notable is the nearly 30% growth in chip exports, a vital sector for technology industries globally.

Expanding Trade Surplus and Import Growth

China’s trade surplus hit $683.5 billion in the first seven months of 2025, supported by robust exports and a 4.1% rise in imports in July, signaling improvements in domestic demand.

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Rare Earth Exports Bounce Back

Following export restrictions applied in April, China’s rare earth magnet exports to the US surged 660% month-on-month in June. These materials are crucial for electric vehicles and renewable energy technologies. However, global rare earth exports remain below last year’s levels.

China’s July export surge highlights its economic resilience and adaptive trade strategy amid tensions with the US. The extension or renewal of the tariff truce will be key to maintaining this momentum and shaping future trade relations globally.