China’s export growth slows, imports rebound in July

China’s customs data showed the country’s July exports grew by 7% on an annualized basis in dollar terms following the 8.6% rise in June. Exports were expected to climb by 9.7%. Meanwhile, imports surged by 7.2% on a yearly basis during July, reversing the 2.3% decline in the previous month. Economists had expected an increase of 3.5%.

China’s export growth slowed to its lowest rate in three months in July, reflecting the mounting challenges facing the country’s manufacturing sector. This slowdown in export growth has heightened concerns about the outlook for China’s manufacturing industry, which is grappling with Western tariffs and declining global demand.

The rebound in imports was primarily driven by a rush to boost chip supplies before anticipated U.S. tech export restrictions, Xing Zhaopeng, Senior China Strategist at ANZ, told Reuters.