China's exports surge on chip and auto demand from AI boom

China’s export engine accelerated in May as the global AI buildout pulled in chips, autos and other high-tech goods, reinforcing Beijing’s role in supply chains that the United States and its allies are trying to de-risk. Customs data showed exports rising 19.4% from a year earlier in dollar terms, far above April’s 14.1% gain and well ahead of economists’ expectations of about 15%.

The strongest gains came from the kinds of products most exposed to the AI investment cycle. Integrated circuit exports jumped 111% in May, aided by rising memory prices, while automated data processing equipment exports surged 66.1%. High-tech product exports rose 50.9% and car shipments increased 39%, a mix that suggests the demand shock is spreading through both digital infrastructure and advanced manufacturing. Shipments to the United States rose about 35.4% year on year, the fastest growth since March 2021, after a long period of weakness in 2025.

Imports also climbed sharply, rising 27.4% from a year earlier, a sign that foreign demand and some domestic restocking were both supporting trade flows. Bloomberg reported China’s trade surplus at about $105.4 billion, the biggest since January, underscoring how heavily the external sector is still carrying the world’s second-largest economy. The numbers also point to a strategic dependence that is hard to unwind: even as Washington pushes to shift chip and industrial supply chains away from China, AI spending around the world is still feeding demand for Chinese components, electronics and factory output.

The strength was not broad-based. Furniture exports rose only 1.9%, toy shipments fell 7% and footwear exports dropped 10.4%, showing that some consumer-goods categories are losing momentum. Separate factory data suggested the export surge may not last at the same pace: new export orders fell from April’s two-year peak, the official manufacturing PMI held only at 50.0 in May, and the private RatingDog manufacturing PMI eased to 51.8 from April’s over-five-year high of 52.2, with export orders dipping slightly.

That split matters because China’s growth model is becoming more reliant on foreign buyers just as domestic demand remains fragile and political pressure abroad is building. Earlier front-loading by overseas customers, who rushed shipments to pre-empt energy-price pressures and broader disruptions tied to Middle East tensions, also helped lift the May numbers. For now, the AI boom is giving China a powerful export tailwind, but the data also show how narrow that strength remains and how difficult containment will be if global demand keeps rewarding Chinese manufacturing.