China's Trade Surplus Tops $1 Trillion for Second Straight Year Fueled by AI-Driven Export Boom

China's goods trade surplus surpassed $1 trillion for the second consecutive year, hitting $1.04 trillion in the first ten months of 2026, as a global race to build artificial intelligence infrastructure powered surging demand for Chinese high-tech exports. Goods exports jumped 35.2% in October from a year earlier, beating analyst expectations of a 33.5% rise and following a 36.3% gain in September. The surplus for October alone narrowed to $105.3 billion from $133.5 billion in September, as imports accelerated sharply.

Imports grew 41.6% in October, the fastest monthly pace since May 2011, driven by demand for tech-related goods, critical minerals including copper, and energy supplies. Crude oil imports rebounded to nearly 42 million tons, the highest level since March, led by a recovery in Persian Gulf shipments, particularly from Iraq, though volumes remained about 13% below year-ago levels. Beijing is also seeking to extend its high-tech advantage into the shipping industry, which carries roughly 80% of global trade, according to Reuters.

The cumulative surplus exceeds the full-year record of $1.2 trillion set in 2025, putting China on track for another annual record. The European Union accounts for nearly a third of the overall imbalance, and Brussels reached a separate agreement with Beijing last month to limit imports of Chinese hybrid vehicles. Separately, Canada-China bilateral trade hit a record high ahead of Prime Minister Carney's planned trip to Beijing, underscoring how trading partners are deepening ties with China even as calls grow for it to rebalance its economy away from export dependence.