China’s Trade Surges on Global AI Hardware Demand

China’s merchandise trade climbed 15.3 percent in the first five months of 2026, reaching 20.68 trillion yuan, or roughly $3.05 trillion. Driven by a global surge in artificial intelligence investment, the country’s export engine is finding new momentum in high-tech manufacturing and automated hardware.

The General Administration of Customs reported that exports rose 11.8 percent year-on-year, with high-value mechanical and electrical products accounting for more than 60 percent of that total. This performance reflects a shift in global demand, as companies worldwide scramble for Chinese-made robotics, AI accelerators, and data center components. In May alone, the value of chip exports doubled, while automatic data processing equipment saw a 66.1 percent increase.

Lü Daliang, director of the GAC's Department of Statistics and Analysis, noted that trade values have remained above 4 trillion yuan for three consecutive months. This growth spans across major partners, with a notable 35.4 percent rebound in exports to the United States. Trade with ASEAN, the EU, and Belt and Road Initiative participants also posted double-digit gains. While economist Tian Yun expects this trajectory to hold through the first half of the year, analysts remain cautious about global inflation risks linked to rising crude oil prices. Nevertheless, the data confirms China’s deepening integration into the global industrial chain, positioning its manufacturing sector as both a primary supplier and a buffer for international market volatility.