In June, China's exports experienced a significant increase, rising 27% compared to the previous year, driven by a surge in demand for vehicles, particularly electric vehicles (EVs), and technology-related products. This growth was attributed to the rapid adoption of artificial intelligence (AI), which has heightened the need for semiconductors and electronic equipment. The increase in exports was notably better than economists had anticipated, following a 19.4% year-on-year rise in May. Additionally, imports surged by 36% in June, surpassing the 27.4% growth seen in May, with analysts linking this expansion to rising import costs influenced by the ongoing Iran war. Wang Jun, vice minister of China’s General Administration of Customs, highlighted the robust trade in electronic components and computing hardware, which saw a nearly 57% increase to 5.1 trillion yuan ($760 billion) in the first half of the year. Despite the strong export performance, domestic spending and investment have been weak due to a prolonged downturn in the property sector. In the first half of the year, China's exports rose 17.6% year-on-year, while imports increased by 26.6%. Policymakers in the U.S. and Europe have expressed concerns over rising trade deficits with China, and while export growth is expected to continue, it is becoming increasingly fragile. Exports to Southeast Asia surged nearly 35% in June, while those to the European Union and Latin America rose by more than 18% and 28%, respectively. Exports to the United States increased by almost 14% from the previous year, partly due to declines in shipments a year earlier following the implementation of higher tariffs by President Donald Trump. As China prepares to announce its economic growth data for the April-June quarter, the government has set an annual growth target of 4.5% to 5% for the year, slightly lower than the 5% growth projected for 2025. However, many ordinary Chinese citizens are feeling the pressure of a slowing economy, leading them to avoid making large purchases.