China’s 10-year government bond yield hovered around 1.70% on Friday, lingering near its lowest level in almost a year, as solid trade data highlighted the resilience of the country’s external sector. Although both export and import growth moderated in July, they remained strong, supported by firm global demand for AI-related technology products.
Exports increased 23.9% year-on-year to USD 397.85 billion, beating market expectations, while imports rose 27.5% to USD 285.35 billion, broadly in line with forecasts. Consequently, China’s trade surplus widened to USD 112.5 billion from USD 97.7 billion a year earlier, exceeding market projections.
In response to ongoing frictions with Washington, Beijing recently announced a new round of retaliatory measures. These include tighter controls on exports of drones and related technologies, sanctions on seven US companies, and the launch of its first national security investigation linked to foreign trade. The escalation underscores persistent trade tensions ahead of the planned meeting in September between Presidents Xi Jinping and Donald Trump.
