China’s trade surplus expanded more than anticipated in June, largely fueled by stronger-than-expected export growth as global demand rebounded following a mutual scaling back of tariffs between China and the United States.
According to customs data released Monday, the trade surplus climbed to $114.77 billion, surpassing forecasts of $113.20 billion and rising sharply from May’s $103.22 billion.
The improvement was primarily driven by exports, which increased 5.8% year-over-year in dollar terms—outpacing the expected 5% rise and improving from a 4.8% gain the previous month.
Exports steadily recovered after earlier-year slowdowns, boosted by a mid-May agreement between Beijing and Washington to reduce tariffs—an accord reaffirmed by both governments in June.
The data also indicated that rare earth exports rose in June, supported by progress in trade negotiations and an uptick in export licenses granted by Beijing. Meanwhile, the U.S. eased some restrictions on chip technology exports to China earlier this month.
However, China’s domestic demand remained relatively soft. Imports edged up just 1.1% year-over-year—slightly below expectations of 1.3%—though this marked an improvement from May’s 3.4% decline.
Overall, the June trade figures suggest a marked rebound in external trade, positioning China for a stronger second-quarter GDP performance. The GDP report is due Tuesday and is expected to show annual growth surpassing Beijing’s 5% target.
