China’s June Exports Surge Beyond Expectations: Strong Growth in Non-U.S. Markets Revealed!

China’s export growth surprised many in June, rising by 5.8% compared to last year. This growth was supported by strong shipments to countries outside the U.S. and offers a brief respite from U.S. tariffs. In dollar terms, exports exceeded predictions, which had estimated a 5% rise.

On the other hand, imports increased by just 1.1%, slightly below expectations of 1.3%. However, it’s the first time imports have grown this year, reversing a trend of declines linked to weak domestic demand.

Interestingly, exports to the U.S. fell for the third straight month, dropping over 16.1% in June. While this decline slowed compared to May’s significant 34% drop, imports from the U.S. also fell by 15.5%. In contrast, shipments to Southeast Asia soared 16.8%, and those to the European Union rose by 7.6%.

In the first half of 2025, overall Chinese exports increased by 5.9%, while imports fell by 3.9%, leading to a sizable trade surplus of nearly $586 billion—up 35% from last year.

These trends reflect the impacts of U.S. President Donald Trump’s tariff policies, which pushed Chinese exporters to seek new markets. For instance, in April and May, exports to Southeast Asia and the EU remained strong, even as shipments to the U.S. declined.

In recent weeks, some progress has been made in U.S.-China trade talks. A temporary truce was established, leading to a reduction in tariffs for a short time. This was a significant step after heightened tensions where both nations had engaged in tit-for-tat measures, including tariffs and export controls.

According to Wang Lingjun, deputy chief of Chinese customs, the agreements made in Geneva and London are promising. Both nations are committed to fulfilling these agreements.

Despite ongoing talks, the stakes remain high. Trump has targeted countries that use routes through Vietnam to evade tariffs. Exports from China to Vietnam increased by 23.8%, indicating that manufacturers are looking for alternatives.

As we approach the second quarter’s GDP growth release, expectations of a slowdown in growth—5.1% compared to 5.4% in the first quarter—could signal future economic challenges for China.

With experts predicting ongoing shifts in global trade dynamics, it’s clear that the impacts of these policies will continue to ripple through markets much further than just China and the U.S. For further insights on recent trade data, you can refer to China’s Customs Administration.

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