China's Trade Hits Record $3.67 Trillion on AI Boom, Exports Jump 27%

China's foreign trade reached an all-time high of $3.67 trillion in the first half of 2026, driven by surging global demand for artificial intelligence-related products. Total trade volume rose 21.2% year-on-year, with exports climbing 17.6% to $2.12 trillion and imports jumping 26.6% to $1.55 trillion, according to customs data released July 14.

June marked the strongest monthly performance, with exports accelerating 27% year-on-year to $412.4 billion—the fastest pace since October 2021—while imports surged 36% to $286.8 billion. Both figures exceeded economists' forecasts. The AI-driven growth extended across multiple categories: computing hardware and electronic components exports rose 56.6% to $756.7 billion in the first half, while over 10,000 intelligent bionic robots were shipped to more than 90 countries. AI-related products contributed 6.9 percentage points to overall export growth during the period.

Multiple factors fueled the surge beyond AI demand alone. Major overseas markets entered inventory restocking cycles, while rising global oil prices—attributed partly to Middle East geopolitical tensions—increased product values and shipping costs. Retailers also accelerated orders ahead of anticipated U.S. tariff increases, with American retailers pulling forward orders by four to six weeks for holiday shopping. China's exports to the United States rebounded 0.2% year-on-year in the first half, reversing prior declines, and jumped 13.9% in June alone.

On the import side, robust industrial production drove significant increases in raw materials and electronic components from over 150 countries. Trade with Southeast Asia surged 22.5% to $626.1 billion, while trade with the European Union grew 14.2% to $447.9 billion. Trade with South Korea posted particularly strong growth at 47.7%. China maintained its position as the world's second-largest import market for the 17th consecutive year, with its share of global imports rising to approximately 10% from 7.9%.

China's trade surplus widened to $126.5 billion in June but narrowed 4.7% overall in the first half due to faster import growth. Analysts cautioned that continued growth faces headwinds. BNP Paribas Securities noted that robust shipments in autos and AI-related items remain dependent on global demand and regulatory barriers, while the International Monetary Fund expects global growth to slow to 3% in 2026 from 3.5% in 2025. Domestically, weakness in consumer spending and property investment continues, though export strength has helped offset broader economic slowdown.