China's trade surplus soars past $1 trillion as AI boom powers exports

China's trade surplus has surpassed US$1 trillion for the first ten months of the year, driven by a surge in exports fueled by the global race to build artificial intelligence infrastructure. The growth in exports came as domestic demand remained weak, helping to offset the slowdown. Despite imports expanding at a faster rate than exports, China's surplus grew to $1.04 trillion for the first ten months, marking the second consecutive year it exceeded the US$1 trillion mark.

This development may heighten tensions with trading partners, particularly the European Union, which is seeking more trade restrictions. China announced the extension of its trade truce with Washington by two months, pending implementation of reciprocal tariff reductions. The risk of further trade barriers remains high in 2027, as Chinese manufacturers expand their presence overseas.

The Asia-Pacific Economic Cooperation summit, where US and Chinese leaders are set to meet, will be held in Shenzhen, China's leading tech and innovation hub.