Chinese exports and imports rise sharply in July

Chinese exports grew by 23.9 per cent in July compared with the same month a year earlier. Imports rose by 27.5 per cent. The figures come from the General Administration of Customs.

The pace of imports remains high but is below that of June, when the increase was 36 per cent.

Behind the numbers lies above all demand for technology. In the first seven months of the year, exports of computers and components grew by 45.2 per cent year on year, driven by the worldwide development of artificial intelligence.

Trade with the United States

Sales to the United States rose by 17 per cent in July. The figure comes as the trade war between the two countries continues.

On Wednesday Washington announced new sanctions, citing forced labour and national security grounds. Beijing responded by restricting drone exports to the United States and adding six companies to its own blacklist.

The two moves came close together. It is the pattern of reciprocal responses that has marked trade relations between the two countries for months, without trade volumes having fallen so far.

Comparing the months helps in reading the import figure. In June the increase was 36 per cent, in July 27.5: the pace remains high, but the momentum has eased.

The world's second largest economy closed last year with a trade surplus of almost 1.2 trillion dollars, a figure without precedent.

A surplus of that size remains a point of friction in relations with trading partners. It is the argument Washington uses to justify tariffs and restrictions, and the one Beijing disputes.

Tensions in the Middle East also weigh on the figures, affecting the costs and timing of shipping routes. That effect has not yet translated into a slowdown in trade.