China Three Things In China

China's trade growth accelerated in May, exceeding expectations due to the AI capex boom, while PPI inflation rose without impacting the stagnant CPI. The report also clarifies that recent news regarding data center investment is part of existing 15th Five-Year Plan policy objectives.

Key Takeaways

• 1.Trade growth beat expectations in May, driven by an AI capex boom and strength in semiconductor and data equipment exports.
• 2.PPI inflation rose to 3.9% while CPI inflation remained flat at 1.2%, signaling weak consumer demand.
• 3.Government infrastructure spending plans for 'Six Networks' (including data centers) remain consistent with prior policy goals.

Table of Contents

• Three quick highlights from China
• Recent GS China macro research

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