China's export engine accelerates, driven by the AI boom
Summary
- China's export growth surged to 19.4% in May, driven by strong demand for semiconductors and technology products amid the global AI boom, surpassing market expectations.
- The trade surplus increased to 105.4 BUSD, with China's trade surplus relative to global GDP exceeding 1%, a level higher than historical peaks for Japan or Germany.
- High-tech product exports grew by 50.9%, while integrated circuit exports soared by 111%, contrasting with weaker performance in traditional sectors like furniture and footwear.
- Despite robust export growth, domestic demand remains fragile, and international pressure to boost consumption adds uncertainty to China's medium-term economic outlook.
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Automatic translation: Originally published in Finnish 10/06/2026, 03:34 GMT. Give feedback here.
China's export growth accelerated significantly in May. Growth reached 19.4% after an already strong 14.1% in April, exceeding market expectations of 15%. Imports also continued their strong performance with 27.4% growth, surpassing estimates.
Source: LSEG
The trade surplus swelled to 105.4 BUSD from 84.8 BUSD in April, reflecting China's strong position in global trade. A recent Fed research also revealed that China's trade surplus relative to global GDP has exceeded 1%. This level is clearly higher than the peak figures for Japan or Germany in the late 20th century.
Export growth now relies heavily on the global AI hype, which has created exceptional demand for semiconductors and technology products. For example, according to Reuters, memory chip prices have risen by 20% month-on-month, and as a result, integrated circuit exports increased by as much as 111% in May. In addition, high-tech product exports grew by 50.9% and car exports by 39%.
Outside the AI boom, however, the situation is clearly weaker. Furniture exports grew by only 1.9%, toy exports decreased by 7%, and footwear exports decreased by 10.4%. The manufacturing PMI showed a sharp decrease in new export orders after April's two-year peak, suggesting that the inventory build-up caused by the energy price shock is fading.
Exports are expected to remain China's primary growth driver this year, led by technology products. However, the fragility of domestic demand and increasing international pressure to boost consumption create uncertainty for the medium term.
