China’s exports surge as AI boom drives strong demand
China’s exports accelerated in June, rising 27 percent from a year earlier, thanks in part to the boom in artificial intelligence, the customs agency said.
The increase in exports in June was much better than economists expected. In May, exports increased by 19.4 percent on an annual basis.
In June, imports increased by 36 percent, better than the annual growth of 27.4 percent in May; Analysts attributed this expansion in part to the Iran war increasing import costs.
China recorded a trade surplus of $125.6 billion in June; This figure was 105.4 billion dollars compared to the previous month.
“With the rapid growth of artificial intelligence, the import and export of products in this field are also strong,” Wang Jun, Deputy Minister of the General Administration of Customs of China, said at a press conference in Beijing. he said.
Trade in electronic components, computer spare parts and other computing hardware increased by nearly 57 percent to 5.1 trillion yuan ($A1 trillion) in the first half of 2026, it said.
Other products are also developing, such as AI glasses, AI translation devices, motorized exoskeletons, and other smart products.
“Trade values recorded another large increase in June,” Julian Evans-Pritchard, head of China Economy at Capital Economics, said in a note on Tuesday.
“This mainly reflects the recent rise in semiconductor prices in the wake of the AI boom. But even setting that aside, foreign demand for Chinese goods remains strong.”
China’s vehicle exports, especially electric vehicles and other technology-related products, have boomed as the rapid adoption of artificial intelligence increases the need for semiconductors and other electronic equipment.
Strength in export production helped offset prolonged weakness in domestic spending and investment due to a prolonged downturn in the real estate sector.
According to customs data, in the January-June period, China’s exports increased by 17.6 percent compared to the previous year, while its imports increased by 26.6 percent.
Policymakers, including those in the United States and Europe, are sounding the alarm about rising trade deficits with China.
To overcome obstacles such as higher tariffs, Chinese businesses are moving their factories to regions such as Europe.
China is also exporting more to Southeast Asia, Latin America and Africa.
China will announce economic growth data for the April-June quarter on Wednesday.
Chinese leaders have set the annual growth target for 2026 at between 4.5 percent and 5.0 percent, slightly below the 5.0 percent growth in 2025.
