China's trade surplus exceeded $1 trillion in the first 10 months of 2026. This increase was driven by a 35.2% rise in exports in October compared to the same month last year. Customs data released on November 10 shows that this milestone was reached a month earlier than in 2025. The total trade surplus for this period is $1.04 trillion, supported by strong global demand for artificial intelligence-related products, such as computer chips and data center servers.
Key Details
The rise in exports comes amid weak domestic consumption and a long slump in the property sector. Exports in October totaled $412.3 billion, while imports rose by 41.6% to $307.1 billion, according to the General Administration of Customs. The strong export figures may help ease some economic challenges faced by China. However, they could also increase tensions with major trading partners, especially the European Union and the United States.
Background
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said, "Exporters have been the key driving force behind China's economy this year. I expect they will continue to perform well in the foreseeable future." However, the rise in exports has raised concerns among trading partners about possible trade imbalances and competition from lower-cost Chinese goods. The upcoming meeting between President Xi Jinping and U.S. President Donald Trump at the Asia-Pacific Economic Cooperation (APEC) summit is expected to discuss these ongoing trade issues.
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The significant rise in China's trade surplus could lead to more scrutiny from the European Union and the U.S. This may result in tariffs or trade barriers that could affect sectors like technology and manufacturing. Investors will be watching for updates from the Xi-Trump meeting at the APEC summit next week, as it could influence future trade relations.
Based on reporting by: businesstimes.com.sg, moneycontrol.com