China's crude oil imports in July increased by 22% month-on-month, coal imports rose by 20% year-on-year, and chip exports surged by 117% year-on-year.

On August 7, the latest data released by China’s General Administration of Customs showed that pipeline and ocean crude oil imports rebounded in July to 35.73 million tons, equivalent to an average of about 8.45 million barrels per day, a jump of 22% compared to June, though still down 24% year-on-year.

Meanwhile, coal imports in July increased by 20% year-on-year to 42.73 million tons, but natural gas imports saw a slight 0.9% year-on-year decrease, as liquefied natural gas supplies from the Middle East continued to be disrupted by regional conflicts.

From an export perspective, the AI investment boom is directly translating into both higher volume and value for China’s technology exports.

Significant Increases in Crude Oil and Coal Imports in July

According to reports, the rebound in crude oil imports in July was partially attributed to the temporary opening of Persian Gulf shipping routes following the interim US-Iran peace agreement in June.

Julian Evans-Pritchard, Head of China Economics Research at Capital Economics, noted that this recovery "benefited from the brief reopening of the Strait of Hormuz at the end of the second quarter."

In the coal market, July import volume soared 20% year-on-year to 42.73 million tons.

For natural gas, July import volume dropped slightly by 0.9% year-on-year, as the trend of liquefied natural gas supply disruptions in the Middle East due to conflicts continued, limiting overall import growth.

Data released by the General Administration of Customs today showed July imports surged 27.5% year-on-year, and import prices shot up 25% year-on-year in June, marking the largest increase since records began in 2006. Rising prices of bulk goods such as chips, crude oil, and metals have collectively driven up the nominal value of imports.

By volume, China’s imports in July of coal and lignite, integrated circuits, iron ore and concentrates grew year-on-year by 19.99%, 8.45%, and 3.31% respectively. Imports of refined oil, crude oil, and unwrought copper and copper products fell year-on-year by 38.55%, 24.32%, and 11.54% respectively.

By value, China’s imports in July of coal and lignite, integrated circuits, copper ore and concentrates increased year-on-year by 74.72%, 62.46%, and 20.24%. Imports of refined oil, crude oil, and steel dropped year-on-year by 24.47%, 9.37%, and rose by 1.55% respectively.

AI-Driven Surge in Technology Exports

The growth in integrated circuit exports has been particularly prominent. According to official data compiled by Wind, from January to July this year, China’s export value of integrated circuits nearly doubled year-on-year; in July alone, chip exports surged by 117% year-on-year, while computer exports climbed by 67%.

Price factors played an important role in this round of export expansion. As trillions of dollars of global capital flooded into the AI sector, supply shortages emerged for semiconductors and related electronic components, with prices for some chips rising as much as 700% over the past year.

Additionally, export prices in June rose 8% year-on-year, marking the third consecutive month of positive growth and ending the nearly three-year downward trend.

David Qu, China economist at Bloomberg Economics, pointed out that China’s trade data continues to show widening divergence between old and new economies—exports of technology-related manufacturing perform strongly, while growth in exports of traditional products lags far behind the overall level. He expects this trend to persist, with technology-related sectors continuing to support overall export performance.