China's trade surplus soars past $1 trillion as AI boom powers exports
FXI•China's trade surplus reached $1.04 trillion in the first 10 months, as October exports rose 35.2% year over year and imports grew 41.6%.
1. Surplus tops $1 trillion
China's trade surplus reached $1.04 trillion in the first 10 months, topping $1 trillion for a second consecutive year and reaching the milestone a month earlier than in 2025. October exports rose 35.2% year over year in U.S. dollar terms, while imports grew 41.6%.
2. Trade and demand risks
A global push to expand AI infrastructure has supported exports, helping offset weak domestic demand. The surplus could add to trade tensions with partners including the European Union, while subdued consumption and the property downturn remain domestic headwinds. Macquarie analysts expect exports to accelerate further in the fourth quarter before starting to slow from the first quarter of 2027.
