China's trade surplus tops US$1 trillion as October exports rise 35.2%

China's trade surplus reached US$1.04 trillion in the first ten months of 2026 after another strong month for exports. Customs figures showed October exports rising 35.2% from a year earlier in US dollar terms, while imports increased 41.6%.

Export growth was slightly slower than September's 36.3% increase but exceeded economists' forecast of 33.5%. Imports accelerated from 31% growth in September and also beat expectations. The cumulative surplus crossed US$1 trillion for a second consecutive year, reaching that point a month earlier than in 2025.

Demand linked to the expansion of AI infrastructure has supported shipments of Chinese technology products. That external strength contrasts with subdued consumption at home and a prolonged property-market downturn that has weighed on household confidence.

The large surplus could add to friction with trading partners, including the European Union. Planned restrictions on some vehicle exports may also encourage manufacturers to bring forward shipments before measures take effect. Those near-term incentives should not be confused with a guarantee that current export growth will continue.

China has announced a two-month extension of its trade truce with the United States. Even so, tariff risks and dependence on overseas buyers remain concerns. The latest figures show strong trade flows, but do not settle how durable global AI investment or demand for Chinese goods will be in 2027.