China’s Exports Accelerate on Strong AI-Driven Demand

China’s exports surged 25% year-on-year to $401.44 billion in August 2026, following July's 23.9% increase, as the global AI infrastructure buildout continued to drive trade across Asia despite weather-related disruptions to shipping. High-tech products accounted for more than half of export growth, with overseas sales of integrated circuits jumping nearly 130% and high-tech exports rising almost 57%, while vehicle shipments slowed. Exports to the US surged 34.4%, while shipments to the EU rose just 6.6%, the slowest increase in 10 months. Exports to ASEAN countries climbed 30.2%, while shipments to South Korea and Taiwan rose more than 40%. The export boom is deepening tensions with partners concerned that China’s manufacturing dominance is putting pressure on domestic industries. President Xi Jinping is due to meet US President Donald Trump in Washington later this month, while tensions with Brussels are also rising ahead of an October deadline to address trade imbalances.

China’s exports surged 23.9% year-on-year to USD 397.85 billion in July 2026, surpassing forecasts of a 22.2% rise but easing from June’s 27.0% growth. The increase was 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%. By contrast, exports of ceramics slumped 28.3%, highlighting the economy's uneven development, where advanced manufacturers are riding the AI boom while more traditional industries struggle with weak demand. Among its trading partners, outbound shipments advanced to the US (17.05%), Japan (14.0%), South Korea (46.6%), the EU (15.95%), and ASEAN (38.36%). For the first seven months of the year, total exports climbed 18.5% yoy to USD 2.52 trillion.

China’s exports surged 27% year-on-year to a record $412.39 billion in June 2026, smashing forecasts of 18.2%. The boom was driven by AI-related goods, with the global AI infrastructure rush creating a historic semiconductor shortage and soaring prices. Semiconductor exports soared 122%, the fastest growth in 13 years, while computer and parts exports rose 53%. Combined, chips and computers drove over a third of China’s export growth in June. China also exported over 1 million vehicles for the first time, with their value rising 70%, as local EV makers gained a 15% share in Europe. Ship exports jumped 42%, and home appliances rose 15%. China’s trade surplus with the EU surged 27% to a record $32.9 billion, intensifying pressure on European leaders to reduce reliance on China. Exports grew across major markets, including the EU (18.5%), US (13.9%), and ASEAN (34.6%), South Korea (42.6%), Taiwan (43.7%). For the first half of 2026, total exports advanced 17.6% to $2.12 trillion.