China Trade Surplus Smallest in Over a Year

China’s trade surplus widened to $119.09 billion in August 2026, up from $101.01 billion a year earlier. Exports jumped 25% year-on-year to $401.44 billion, following a nearly 24% increase in July, as the global AI infrastructure buildout continued to boost trade across Asia. Shipments to the US surged 34.4%, lifting China’s surplus with the US to more than $29 billion, the widest gap since Donald Trump returned to the White House in January 2025. Washington is stepping up its rhetoric toward Beijing, urging China to boost domestic demand and reduce its reliance on exports for growth, ahead of a planned meeting between Chinese President Xi Jinping and US President Donald Trump later this month. Meanwhile, imports rose 28.2% to $282.36 billion, slightly below forecasts but accelerating from July’s 27.5% increase. In the first eight months of 2026, China’s trade surplus reached $806 billion, putting the annual figure on track to surpass last year’s record of $1.2 trillion.

China’s trade surplus widened to USD 112.5 billion in July 2026, up from USD 97.70 billion a year earlier and exceeding forecasts of USD 107 billion, as exports grew more than expected. Exports jumped 23.9% yoy to USD 397.85 billion, driven by strong demand for AI-related technology products and a rush by manufacturers to ship goods to the US ahead of potential new tariffs. The US applied a new 12.5% levy on Chinese products in late July, replacing a temporary 10% levy that had lapsed. Exports of semiconductors almost doubled in value terms from last year, and overall high-tech product exports soared 40.7%. Meanwhile, imports rose 27.5% yoy to USD 285.35 billion, easing from a 36% jump in June. China’s trade surplus with the US declined to USD 28.03 billion in July from USD 28.9 billion in June. In the first seven months of 2026, China’s trade surplus reached USD 687.37 billion, up from USD 683.5 billion a year earlier, with exports and imports rising 18.5% and 26.7%, respectively.

China unveiled new countermeasures against the U.S., tightening export controls on drones bound for the U.S. and banning transactions with six American firms. The move, framed as retaliation for fresh U.S. restrictions, comes ahead of a planned September meeting between Presidents Xi Jinping and Donald Trump, despite recent signs of thaw following May talks in Beijing. The measures respond to the U.S. Federal Communications Commission's ban on imports of Chinese drones and the Department of Homeland Security's addition of 43 Chinese firms to the Uyghur Forced Labor Prevention Act entity list. The Commerce Ministry accused Washington of “seriously violating consensus” reached by the two leaders and “severely damaging China’s legitimate rights. It urged the U.S. to reverse course and warned further measures could trigger additional sanctions.