China’s exports surged 36.3 percent in September compared with the same month last year, driven by strong overseas demand for artificial intelligence (AI) technologies and electric vehicles, official customs data showed. The increase exceeded August’s 25 percent growth and consensus estimates, highlighting China’s sustained reliance on trade amidst rising geopolitical tensions.
According to China’s General Administration of Customs, the country’s monthly trade surplus reached $133.5 billion in September, up from $119.1 billion in August, marking a record when adjusted for the typical distortion caused by the Lunar New Year holiday period. For the first nine months of 2026, the trade surplus totaled $938.1 billion, surpassing last year’s figure of $875.1 billion for the same period and positioning China to exceed 2025’s annual record surplus of $1.2 trillion.
Exports rose across all major partners. Shipments to the United States increased by 39.6 percent year on year, outpacing August’s 34.4 percent gain. Meanwhile, exports to the European Union grew 25.3 percent, contrasted with a modest 0.7 percent rise in imports from the bloc. The expanding trade imbalance with the EU, driven largely by vehicles and machinery, has provoked concern among European officials. Earlier this month, Beijing and Brussels reached an agreement imposing quotas on Chinese hybrid electric vehicle imports, aiming to curb market disruptions caused by rapidly rising Chinese car sales, which surged 56.3 percent in September alone.
The surge in AI-related exports was particularly notable. Products including semiconductors and automatic data processing equipment accounted for 17.9 percent of total exports in September and contributed 13 percentage points to overall export growth, up from 11.3 percentage points in August. Although semiconductor export values increased by 136 percent year on year, volumes rose only marginally by 1 percent, indicating rising chip prices rather than a substantial increase in quantity.
China’s imports also grew robustly, rising 31 percent year on year in September against expectations of 25 percent, partly reflecting higher oil prices that pushed up the country’s import bill.
The strong trade performance comes as China’s domestic economic growth remains moderate. The country’s economy expanded 4.3 percent in the second quarter, one of its slowest rates in recent decades, amid challenges such as high youth unemployment, a persistent real estate sector crisis, and subdued consumer confidence.
Market analysts note that China’s export growth benefits from sustained international demand for affordable, high-quality technology and green products amid global economic adjustments. However, some trading partners warn that China’s competitive advantage is contributing to the erosion of manufacturing bases in regions such as Europe, particularly in the automotive sector. The recent EU-China trade deal aims to manage these concerns but may signal the possibility of broader restrictions if trade imbalances continue to widen.
Looking ahead, diplomatic engagement between China and its trading partners remains critical. U.S. President Donald Trump is scheduled to meet Chinese leader Xi Jinping next month for their third bilateral summit in under a year, with trade tensions expected to be a key topic of discussion as both sides navigate complex economic interdependencies.