China’s overseas shipments expanded more than anticipated in June, fueled by robust appetite for semiconductors and a flurry of activity by producers hurrying to move merchandise to America before possible new levies, offsetting broader anxieties about the Iran conflict and softening global demand.

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This better-than-expected trade showing indicates that Chinese producers kept up sales even as expansion slowed in leading economies and trade ties with Washington remained uncertain. Robust appetite for AI-related tech items, early loading of goods destined for the U.S., and competitive pricing strategies by Chinese sellers helped sustain foreign sales.

Exports increased 27% compared to the same month last year in U.S. dollar terms, according to customs figures released on Tuesday, marking the strongest result in four months. That exceeded the 19.4% rise seen in May and the 18.2% advance predicted by analysts.

Imports jumped 36%, versus a 27.4% gain the prior month, hitting a five-year peak. Economists had projected a 24% increase for June.

Worldwide investment in artificial intelligence is offering a notable buffer for producers in China’s $20 trillion economy, even as fallout from the Middle East hostilities and an extended real estate downturn continue to drag on overall expansion.

Separate factory activity figures for June, issued late last month, indicated that foreign demand was starting to pick up, but prices at the factory gate kept falling as firms reduced charges to secure orders from clients strained by elevated energy expenses tied to the Iran situation.

Chinese exporters gained an advantage as U.S. retailers moved up their orders by four to six weeks to build inventory for Black Friday and Christmas sales ahead of anticipated tariff increases later this year. Still, considerable uncertainty persists after U.S. President Donald Trump’s May trip to Beijing failed to produce the advances many had anticipated.

Robust exports helped push the economy beyond forecasts in the first quarter, but momentum has since slowed, strengthening economists’ worries that feeble domestic demand leaves China vulnerable if external conditions deteriorate, increasing the likelihood of additional policy measures.

China is set to release its second-quarter GDP figure on Wednesday.

The nation’s trade surplus reached $125.6 billion in June, climbing from $105.4 billion a month earlier.

Source: IndexBox Market Intelligence Platform