China’s foreign trade performance has remained exceptionally strong, with the country’s trade surplus reaching approximately $1.04 trillion during the first ten months of 2026.

The latest customs figures show that exports increased by 35.2 per cent year-on-year in October, reaching approximately $412.3 billion. Imports also recorded substantial growth, rising by 41.6 per cent to $307.1 billion.

The export performance was supported by strong international demand for semiconductors, artificial intelligence hardware, electric vehicles and other manufactured products. China’s role in supplying equipment for data centres and the expanding global AI industry has become particularly important to its trade performance.

The increase in imports was driven by demand for technology-related products, critical minerals and energy supplies. Imports of high-technology products reportedly increased by 72 per cent, demonstrating that China’s manufacturing and technology industries continue to depend on substantial international supply chains.

Although October’s monthly trade surplus narrowed as imports increased, the cumulative surplus for January to October reached $1.04 trillion. This places China on course to challenge or exceed its previous annual record of approximately $1.2 trillion set in 2025.

The figures also reveal the geographical distribution of China’s trade growth. Exports to the United States increased by 32.9 per cent in October, while shipments to Southeast Asia rose by 46 per cent. Exports to the European Union increased by 24 per cent.

The growing surplus is economically significant because exports have provided a major source of support for China’s economy at a time when domestic consumption and the property market continue to face difficulties.

However, China’s expanding trade surplus is also attracting attention from international trading partners. European countries have raised concerns about competition from Chinese manufacturers, particularly in electric vehicles and other industrial products. Trade restrictions, tariffs and investigations into Chinese imports remain potential sources of friction.

The United States is also seeking to protect its domestic industries and maintain restrictions on certain advanced technologies. These issues are expected to feature prominently in discussions between Xi Jinping and Donald Trump during the forthcoming APEC summit in Shenzhen.

Economists have cautioned that continued dependence on exports may expose China to external economic risks, especially if global demand weakens or governments introduce additional trade restrictions.

The latest figures nevertheless demonstrate the continuing competitiveness of Chinese manufacturing and the importance of international markets to the country’s economic performance.