China trade surplus tops $1 trillion as AI demand lifts exports
Why it matters: The export boom is cushioning weak demand at home but could intensify frictions with the US and European Union.
China’s trade surplus passed $1 trillion in the first 10 months of 2026, powered by strong overseas demand for high-tech goods tied to the global buildout of AI infrastructure. Customs data showed October exports rose 35.2% from a year earlier, beating forecasts and only slightly below September’s 36.3% gain, while imports climbed 41.6%. The surplus reached $1.04 trillion, topping the $1 trillion mark for a second straight year and doing so a month earlier than in 2025. The figures underscore Beijing’s growing reliance on exports as weak consumer spending and a prolonged property slump weigh on the domestic economy. That dynamic could sharpen trade tensions with Washington and the European Union as both weigh curbs on Chinese goods.