China Trade Surplus Passes $1 Trillion in 10 Months as AI Chip Exports Jump

China's trade surplus surged past $1 trillion in the first 10 months of 2026, customs data released on Tuesday showed. The surplus for January to October reached $1.04 trillion. It topped $1 trillion for a second consecutive year and reached the milestone a month earlier than in 2025, Reuters reported. CNN reported the same $1.04 trillion figure and the same timing. Reuters said a global race to build AI infrastructure buoyed sales of high-tech products.

October exports beat forecasts

Exports in October rose 35.2 percent from a year earlier to $412.3 billion, according to China's General Administration of Customs. Imports expanded 41.6 percent to $307.1 billion. The monthly surplus for October was $105.3 billion, narrowed from $133.5 billion in September as imports picked up.

The export rise was only a touch slower than the 36.3 percent surge in September. It was ahead of the 33.5 percent increase forecast by economists. Imports beat the median Reuters poll forecast of 32 percent and accelerated from 31 percent growth in September.

Chip exports lead the high-tech rise

Exports of integrated circuits increased by 111 percent in value in the first 10 months of the year, according to the official data. The total surplus puts China on track to exceed its record $1.19 trillion trade surplus of last year, The Wall Street Journal reported.

How long the run lasts depends in part on demand for AI hardware. "The outlook for exports depends on how long the AI boom will last," Macquarie analysts said, quoted by Reuters.

Surplus with the United States dips, truce extended

China's trade surplus with the United States dipped slightly to $32.71 billion in October, from $34.01 billion the previous month. On Monday, China officially announced the extension of a trade truce with Washington that was due to expire on November 10, extending it by two months, Reuters reported.

The data comes ahead of next week's Asia-Pacific Economic Cooperation summit in Shenzhen, where Chinese President Xi Jinping and US President Donald Trump are expected to meet for the third time this year.

Analysts warned that trade friction could still return. "The risk of additional tariffs and other trade barriers will remain elevated in 2027, particularly as Chinese manufacturers continue expanding their presence in overseas markets," said Joe Peissel, lead macroeconomist at Trivium China, quoted by Reuters.

Oil imports fall, car sales slide at home

Oil imports fell 13.3 percent from a year earlier, though shipments reached their highest level since March as buyers sought supplies after the US-Israeli war on Iran disrupted Middle East flows, Reuters reported. At home, Chinese car exports maintained a solid pace of growth in October, while domestic vehicle sales recorded a 12th straight month of declines, separate industry association data showed.