Customs data released on Friday showed China's trade surplus narrowed to $US112.5 billion ($A159.9 billion) from $US125.6 billion in June. Exports rose nearly 24 per cent in July from a year earlier, compared with a 27 per cent increase in June. Imports climbed 27.5 per cent year-on-year, but that was lower than June's jump of 36 per cent. Trade data shows China has fully transitioned from providing mostly low-cost manufacturing to supplying vital machinery and components for advanced manufacturing. China's exports to the US climbed just 2.6 per cent year-on-year in the first seven months of 2026, while imports from the US grew 1.4 per cent.