ISTANBUL

China's exports topped market estimates in July as trade negotiations with the US are still ongoing, while imports posted their biggest monthly growth since July 2024.

Exports from the world's second-largest economy rose 7.2% year-on-year in July, beating forecasts of a 5.4% increase.

Meanwhile, imports grew 4.1% on an annual basis, despite market estimates of a 1% fall in the month, according to customs data released on Thursday.

Due to increased imports, the country's foreign trade surplus was $98.24 billion in July, lower than estimates of $105.2 billion.

Year-to-date, China's total exports rose 6.1% compared to a year ago, while imports were down 2.7%.

In the seven-month period, China's trade surplus was $683.5 billion, 32% more than in the same period of 2024.

Separately, China's manufacturing activity unexpectedly declined to a three-month low in July, as the official manufacturing purchasing managers' index (PMI) dropped from 49.7 in June to 49.3, below forecasts of 49.7.

US and Chinese negotiators have not yet reached a final trade deal that would prevent high tariffs when their truce ends on Aug. 12.

This week, US President Donald Trump said that the US and China are rapidly narrowing gaps on a trade deal.

"We're getting very close to a deal. We're getting along with China very well," he told CNBC. "I think we'll make a good deal. It's not imperative, but I think we will make a good deal."