(Yicai) July 15 -- China's exports surged 27 percent in June from the year before, beating market expectations and posting the strongest month-on-month growth for the month in the past decade, buoyed by soaring integrated circuit shipments and a rebound in vehicle exports, according to the latest data.

June’s exports jumped 9.5 percent from May, according to a report by Guo Lei, chief economist at GF Securities. Year-on-year export growth accelerated to 27 percent from May’s 19.4 percent.

The artificial intelligence investment cycle continues to drive exports across China's semiconductor supply chain. In June, integrated circuit exports surged 121.9 percent from the year before, hitting a new high for the year. During the first half, integrated circuits and automatic data processing equipment together accounted for 14.8 percent of China's total exports, with a combined export growth of 67.5 percent. Excluding these two categories, overall export growth in the first six months was 11.8 percent.

Energy demand and investment in AI infrastructure have created a reinforcing loop in export growth across Asia. This can be seen in South Korea's semiconductor exports, which also accelerated during the first half. South Korea’s semiconductor exports soared 131 percent from January to February year on year, then surged 151 percent in March, 174 percent in April, 169 percent in May and 200 percent in June.

China's home appliance exports also attracted market attention, supported by unusually hot weather across Europe. In June, household appliance exports jumped 15.3 percent from the year before, significantly higher than May’s 9.4 percent clip and the growth of 4.3 percent logged in the first five months.

Another notable development was the recovery in automobile exports. After slowing between March and May, car exports appeared to regain momentum in June, surging 69.6 percent from a year earlier.

By destination, exports to South Korea and Taiwan posted particularly strong growth of 42.6 percent and 43.8 percent, respectively, which likely reflected increased trade within the AI industrial chain. Exports to Southeast Asia, Africa and Latin America also grew slightly faster than China's overall export rate. Exports to Europe and the United States expanded at a slower pace than the overall average but still recorded double-digit growth.

In the first half, China’s exports to Southeast Asia, Latin America, Africa, Russia and India combined accounted for approximately 39 percent of the country's total exports. The US and Europe represented about 25 percent, while Hong Kong and Taiwan accounted for roughly 13 percent. Exports to Japan and South Korea together made up more than 8 percent, with exports to South Korea growing particularly rapidly and now representing 4.4 percent of China's total exports.

Editor: Kim Taylor