Exports from China's southern tech hub have surged due to demand for electric vehicles and a series of deals with countries participating in the Belt and Road Initiative.

Analysts say the positive trade figures from Shenzhen bode well for Beijing's target of around 5% economic growth this year, as well as a response to geopolitical frictions and Western technology export restrictions.

According to Chinese customs data, in the first two months of the year, the value of goods exported from this city reached 441.4 billion yuan ($61.3 billion), up 53.1% over the same period. Meanwhile, the value of goods imported increased 31.9% to 233.74 billion yuan. The total value of imports and exports increased 45% compared to last year, reaching more than 675 billion yuan.

Shenzhen is also home to the headquarters of Huawei Technologies, Tencent, electric car maker BYD and drone maker DJI - companies that are on the US Commerce Department's blacklist.

The 10-member Association of Southeast Asian Nations (ASEAN) became Shenzhen's largest trading partner, with trade value rising 58.1 percent to 106.92 billion yuan, followed by Hong Kong, the United States, Europe and Taiwan.

Of which, sales to the US increased by 62.4% over the same period, with Europe at 20.9%. With countries participating in the Belt & Road Initiative - a program to connect economies into a China-centered trade network, the total trade value reached 249.1 billion yuan, up 57.8% over last year.

“Usually, the growth of exports to ASEAN is accompanied by a decline in production to the US,” said Peng Peng, executive chairman of the Guangdong Reform Association, a Guangzhou-based think tank. Therefore, the city’s recovery in exports to the US could boost confidence and reduce the damage caused by changes in the supply chain in the short term.

Shenzhen is China's top export city, home to more than 2.01 million businesses - more than 99% of which are small and medium-sized enterprises. Washington has placed several major tech companies there on an export blacklist, including Huawei, DJI, semiconductor designer Conrad Technology and facial recognition technology provider Cobber.

In the first two months of the year, Shenzhen's mechanical and electrical exports reached 295.5 billion yuan, up 30.2% year-on-year. The trade surplus of this technology hub was greatly contributed by BYD - an electric vehicle company that exported 36,700 units, up 47.2% year-on-year, thereby boosting sales of related components and materials.

China lags behind the US in AI AI was a major topic of discussion in China this week, as lawmakers sought to harness technologies like ChatGPT as engines of economic growth while maintaining tight control over the emerging industry.