China’s trade surplus has crossed $1 trillion with two months of 2026 still to go. The gap between exports and imports reached $1.04 trillion in January–October, according to Reuters’ reporting on customs data released November 10. China has now passed that threshold for a second consecutive year, reaching it a month earlier than in 2025. Source
Helping keep the factories busy: the global rush to build AI infrastructure. Reuters reports that the spending boom has buoyed Chinese high-tech exports, helping offset weak domestic demand. Source
Chips are selling. Consumers are holding back.
Semiconductor export value rose 111.1% year over year in U.S.-dollar terms during the first ten months of 2026, Reuters reports. High-tech product exports increased 47.9% over the same period. These export totals don’t isolate AI-related sales. Source
October exports rose 35.2% from a year earlier in U.S.-dollar terms, beating the 33.5% increase economists had forecast. Imports increased 41.6%. As imports accelerated, the monthly surplus actually narrowed to $105.3 billion from September’s $133.5 billion, according to Associated Press reporting published by NBC News. Somehow, $105.3 billion is the smaller number in this story. SourceSource
At home, a prolonged property downturn has damaged household wealth and confidence, leaving consumers reluctant to spend, Reuters reports. Source
An export lifeline comes with strings
Selling more abroad also leaves China exposed to decisions made elsewhere. Joe Peissel, lead macroeconomist at Trivium China, told Reuters that the risk of additional tariffs and other trade barriers would remain elevated in 2027 as Chinese manufacturers expand overseas. Source
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