October exports rose 35.2% on an AI boom. China’s trade surplus passed $1 trillion for a second year.
China’s trade surplus topped $1 trillion for a second straight year, customs data showed Tuesday, as exports of AI-related and high-tech goods surged. Exports rose 35.2% in October from a year earlier in U.S. dollar terms, beating the 33.5% forecast in a Reuters poll. September’s rise was 36.3%. Imports grew 41.6%, well above the 32% forecast.
The surplus for January through October reached about $1.04 trillion, a month earlier than last year, when the full-year surplus hit a record $1.19 trillion. The monthly surplus narrowed to about $105 billion from $133.5 billion in September as imports accelerated. China’s surplus with the United States dipped to $32.7 billion in October from $34 billion in September.
Exports have been driven by a global push to build AI infrastructure, along with semiconductors and cars, even as domestic demand stays weak. Industry data showed domestic vehicle sales fell for a 12th straight month. Macquarie analysts said they expect exports to accelerate further in the fourth quarter before slowing from early 2027.
Economists warn the surplus is likely to sharpen tensions with trading partners, especially the European Union, which has been weighing trade curbs. Chinese officials say Beijing is not seeking a larger surplus and wants more balanced trade.
This report draws on Reuters, The Associated Press, The Standard and IndexBox.