China's Exports Growth Defies Geopolitical Tensions and Trade Headwinds

Li Chen
07 Aug, 2026
Hong Kong

Stocks across exchanges in China advanced in Friday's trading as investors reviewed the latest international trade data. 

The Hang Seng index increased 0.01% and the mainland-focused CSI 300 Index 0.8% as investors debated possible policy support for stocks. 

 

China's Exports, Imports and Trade Surplus Expanded In July

China's exports continued to expand at a solid pace in July, keeping the recent momentum despite geopolitical uncertainties and increasing trade headwinds.  

Exports soared 23.9% to $397.9 billion, imports advanced 27.5% to $285.6 billion, and the trade surplus widened to $112.5 billion from $97.7 billion a year ago, respectively. 

However, trade surplus eased from $125.6 billion in June amid higher cost of energy products.  

The global race to build artificial intelligence infrastructure and the rise in demand for renewable energy products sustained the momentum for shipments, said the Customs Bureau. 

Exports to the ASEAN region soared 38.3% and to the European Union advanced 16%. 

Direct shipments to the U.S. surged 17%, largely because of the demand for electronic components and electrical subsystems used by data centers.  

China's trade surplus with the U.S. slightly declined to $28.03 billion from $228.9 billion in June. 

In the first seven months to July, China's trade surplus edged up to $687.5 billion from $683.5 billion a year ago, and exports advanced 18.5%, while imports soared 26.7% in the period, respectively.  

 

China Indexes and Stocks 

The Hang Seng Index increased 0.01% to 25,532.36, and the mainland-focused CSI 300 Index advanced 0.8% to 4,689.96. 

For the week, the Hang Seng Index decreased 1.6%, and the CSI 300 Index advanced 2.8%. 

Banks and financial services providers led decliners in Shanghai and Hong Kong, and residential property developers lacked direction. 

ICBC fell 0.9%, China Construction Bank decreased 1.3%, and Agriculture Bank of China eased 0.9%. 

Eoptolink Technology jumped 4.4% to ¥440.23, Zhongji Innolight edged up 2.6% to ¥977.45, and NAURA Technology increased 0.9% to ¥749.02.