China’s exports surge amid AI-driven demand

What the report says

China’s exports rose sharply in September, according to figures cited by Al Jazeera from the country’s customs authorities. Shipments increased 36.3 percent year on year to $447.18bn, the largest monthly gain since 2021, when trade comparisons were affected by the pandemic. Imports also strengthened, rising 31 percent from a year earlier.

The article said technology-related trade was the main driver of the surge. Semiconductor exports more than doubled, while shipments of automatic data processing machines also climbed strongly. An HSBC economist quoted by Al Jazeera said demand linked to artificial intelligence, along with China’s cost and supply-chain advantages, helped support the rebound.

Trade with major markets was broad-based. Exports to the Association of Southeast Asian Nations, the European Union and the United States all rose in September, with ASEAN remaining China’s largest export destination. For the first nine months of the year, China’s exports and imports were both up significantly, leaving the country with a large trade surplus.

The report places the export increase in the context of slower domestic growth, a weak property market and softer consumer demand in China. It also notes that stronger external demand may help support growth, although analysts cited by Al Jazeera said the recovery remains unbalanced and that domestic activity will need to improve over time.