China's May 2026 Export Surge Defies Geopolitical Tensions

China recorded a trade surplus exceeding USD 105 billion in May 2026, driven by significant demand for AI-related and high-end manufactured goods. Exports rose 19.4% while imports surged 27.4%. However, geopolitical tensions and ongoing conflicts pose potential risks to the robust export outlook, according to an ICICI Bank Research report.

China's export sector showcased remarkable resilience in May 2026, as demand for artificial intelligence (AI)-related industries and high-end manufactured goods propelled the country to a trade surplus surpassing USD 105 billion, according to a report by ICICI Bank Research.

Exports surged by 19.4% year-on-year, beating market expectations of 15% and accelerating from April's growth of 14.1%. Meanwhile, imports climbed by 27.4%, expanding the trade surplus to USD 105.4 billion from the previous month's USD 84.8 billion.

The report highlighted the robust overseas demand for China's high-tech and mechanical products, with exports of high-tech goods soaring by 50.9%. Strong demand from the United States, ASEAN economies, and other key markets fuelled this upbeat performance, although ongoing geopolitical tensions, notably in West Asia, could pose risks to future growth.