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China Trade Surplus Expands to Four-Month High as AI Boom Drives Exports

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China Trade Surplus Expands to Four-Month High as AI Boom Drives Exports

China's May trade surplus expanded to its highest level since January, driven by an artificial intelligence boom that offset the economic fallout from the war in Iran.

Trade surplus grew to $105.4 billion in May from $84.8 billion in April, according to data from the General Administration of Customs released Tuesday.

The reading was higher than the consensus forecast of $88.7 billion tracked by Investing.com.

Exports rose 19.4% year over year to $376.8 billion, beating the consensus forecast for a 15% growth and exceeding April's 14.1% expansion.

The surge in exports reflects continued support from AI-related hardware demand, as well as some front-loading of overseas orders in the midst of geopolitical uncertainties, Bloomberg reported, citing Guotai Junan International Holdings Chief Economist Hao Zhou.

Computers and parts exports jumped 66% year over year in May, the fastest increase since 2010, and accelerating from a 47% rise in the previous month, according to the report.

Integrated circuit exports soared 111%.

Imports increased 27.4% to $271.3 billion, faster than the 25.3% jump in April. The consensus forecast was for a 25% rise.

The jump in imports came as companies are also stocking foreign chips and equipment, Bloomberg said. Chinese imports of South Korean semiconductors surged more than 200% in May, according to the news outlet.

"For now, China's import growth remains mainly a tech story rather than an energy story, as evidenced by the surge in imports from Korea," ING Think's Greater China Chief Economist Lynn Song wrote.

For the first five months, the trade surplus reached $451.7 billion, led by exports of $1.713 trillion and imports of $1.262 trillion during the period.

"A higher-than-expected surplus could help support growth in 2Q26, but year-to-date the surplus is still down around -3.8% YoY," Song added.

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