Japan exports soar 23% as China shipments surge and AI demand fuels growth

Japan’s exports climbed 23.2% in July compared with the same month last year, with stronger semiconductor equipment sales and much heavier trade with China doing most of the lifting.

That was the quickest annual export gain since October 2022. It also meant export growth sped up for a fifth straight month. Economists had been looking for a smaller 19.9% rise. Chipmaking equipment was a major reason the total came in so high.

Japan shipped 49.1% more semiconductor machinery by value than a year earlier as companies continued pouring money into hardware for artificial intelligence.

China was also buying much more from Japan in July compared to last year. Imports from Japan into China grew by 25.8% whereas exports to America were up 22%. China remains Japan’s top trading partner.

Still, the growth in income derived from exports was significantly higher than growth in volume of shipments. The volume of exports grew by only 5.2%. Price increases and weak currency helped increase the export value.

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