China’s trade surge and record electricity use amid slowing growth

China’s economy showed mixed signals in July. On July 10, electricity consumption hit a new record of 1.518 trillion kWh, driven by higher industrial output, summer cooling demand and increased use of new‑energy vehicles, according to the National Development and Reform Commission.

In June, Chinese exports jumped 27 % year‑on‑year, the strongest rise since October 2021, while imports rose 36 %, creating a $125.6 billion trade surplus. The surge was powered by global demand for artificial‑intelligence chips and other high‑tech equipment, with AI‑related exports to the United States up about 14 %.

Despite the export strength, China’s overall GDP growth slowed to 4.3 % in the second quarter, one of the lowest rates in decades, as weak consumer spending, a prolonged property‑sector slump and falling investment weighed on the economy. Industrial production grew 5.3 % in June, but retail sales rose only 1 % and fixed‑asset investment fell 5.7 %.

Regional markets felt the ripple effects. Asian stock indexes fell after the U.S. Federal Reserve’s Beige Book signaled higher rates and amid heightened Middle‑East tensions, with Japan’s Nikkei and South Korea’s Kospi posting sharp declines, while Hong Kong’s Hang Seng showed modest gains.