China's June exports surge 27% from a year earlier as AI boom drives
strong demand
[July 14, 2026] By
CHAN HO-HIM
HONG KONG (AP) — China’s exports accelerated in June, jumping 27% from a
year earlier thanks partly to the boom in artificial intelligence, the
customs agency said Tuesday.
The increase in exports in June was much better than economists had
expected. Exports rose 19.4% year-on-year in May.
Imports in June surged 36%, better than May’s 27.4% year-on-year growth,
with analysts attributing the expansion in part due to the Iran war
driving up import costs.
China recorded a trade surplus of $125.6 billion in June, widening from
$105.4 billion in the previous month.
“With the rapid growth of AI, our imports and export of products in this
field are robust," Wang Jun, vice minister of China’s General
Administration of Customs, said at a news conference in Beijing.
He said trade in electronic components, computer spare parts, and other
computing hardware jumped nearly 57% to 5.1 trillion yuan ($760 billion)
in the first half of the year. Other products such as AI glasses, AI
translating devices, powered exoskeletons and other smart products are
also evolving.
“Trade values took another big leg up in June,” Julian Evans-Pritchard,
head of China Economics at Capital Economics, wrote in a note Tuesday.
“This predominantly reflects the recent surge in semiconductor prices on
the back of the AI boom. But even putting that aside, foreign demand for
Chinese goods remains robust.”
China's exports of vehicles, especially EVs, and other tech-related
products have boomed as rapid adoption of AI increases the need for
semiconductors and other electronic equipment.
The strength in export manufacturing has helped to offset prolonged
weakness in domestic spending and investmentdue to a prolonged downturn
in the property industry.
In January-June, China’s exports climbed 17.6% from a year earlier,
while imports jumped 26.6%, according to the customs data.
Policymakers including those in the U.S. and in Europe have express
alarm over rising trade deficits with China. In order to bypass barriers
such as higher tariffs, Chinese businesses have been moving factories to
regions like Europe. China has also been exporting more to Southeast
Asia, Latin America and Africa.
Wang, the customs official, acknowledged the threat from rising trade
barriers.
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Trucks move past containers stored at a container terminal in
Shanghai, China, Tuesday, July 14, 2026. (Chinatopix Via AP)
 “We still face serious risks and
challenges in the second half of the year,” he said.
While China's export growth is likely to continue, it is becoming
increasingly fragile, said Wei Li, head of Multi-Asset Investments
at BNP Paribas Securities (China). Robust shipments in autos and
AI-related items will remain dependent on global demand and
regulatory barriers, he said.
Exports to Southeast Asia in June surged nearly 35% from a year ago,
while those to the European Union and Latin America increased more
than 18% and 28%, respectively.
Exports to the United States climbed almost 14% from a year earlier.
China's shipments to the U.S. have risen in recent months, partly
due to declines in shipments a year earlier after President Donald
Trump returned to office last year and implemented higher tariffs.
China is set to announce its economic growth data for the April-June
quarter on Wednesday. Chinese leaders have set an annual growth
target of 4.5% to 5% for this year, slightly lower than the 5%
growth in 2025.
Last week, the International Monetary Fund raised China’s annual
growth forecast by 0.2 percentage point to 4.6%. But it said it
expects China’s economy to expand just 4.1% in 2027.
Chinese leaders have sought to boost consumer spending through
various initiatives, including trade-in subsidies for autos and home
appliances. But many ordinary Chinese have been feeling the pressure
from a slowing economy and avoiding big-ticket purchases.
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AP Videographer Borg Wong contributed from Beijing.
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