China’s exports surged 25% in August, driven by strong demand for AI, EVs and other high-tech goods even as domestic demand remains weak
China’s exports grew faster than expected in August, helped by strong overseas demand for high-tech goods, electric vehicles and other advanced products. The surge provided a key support to an economy still struggling with weak consumer spending and investment at home.
Exports rose 25 per cent year-on-year in August, accelerating from 23.9 per cent growth in July, according to data released by China’s customs authorities on Tuesday. The increase was in line with market expectations.
Imports also grew sharply, rising 28.2 per cent from a year earlier, compared with 27.5 per cent growth in July. Economists had expected a 30 per cent increase.
The stronger import growth still left China with a $119.1 billion trade surplus in August, up from $112.5 billion in July.
AI and high-tech goods drive exports
Strong demand for artificial intelligence-related products helped Chinese exporters, along with electric vehicles, solar cells and lithium-ion batteries.
China has moved up the value chain in recent years, becoming a major supplier of electric vehicles, industrial machinery, semiconductors and equipment used in AI infrastructure and industrial automation.
Some Chinese companies have also continued shipping goods to the United States amid uncertainty over tariffs, analysts said.
More from BusinessChina has increasingly expanded exports to Southeast Asia, Latin America and Africa. This has helped offset some of the impact of higher trade barriers in the US and Europe.
Exports mask weakness at home
The strong export numbers contrast with a weaker domestic economy.
China’s economic growth slowed to 4.3 per cent in the April-June quarter. Recent data have also shown slower industrial production and retail sales, while fixed-asset investment has weakened.
The property sector, once one of the biggest drivers of Chinese growth, remains under pressure after a years-long downturn.
The divergence between strong exports and weak domestic demand has increased Beijing’s reliance on overseas markets to support growth.
Premier Li Qiang said last month that China needed to stabilise external demand and expand international trade cooperation, while acknowledging weak domestic demand and difficulties faced by businesses.
The government has introduced measures to support the economy, including an 800 billion yuan ($119.2 billion) financing programme aimed at supporting infrastructure investment.
China also announced on Sunday that it would inject about $54 billion into state banks and insurers as part of efforts to strengthen the economy.
Trade surplus crosses $800 billion
China’s trade surplus reached $805.5 billion in the first eight months of 2026. It is on track to exceed $1 trillion for the second consecutive year.
The surplus with the US increased to $29.2 billion in August, from $28 billion in July.
The figures are likely to keep trade tensions in focus. The US and European Union have both raised concerns about China’s growing trade surplus and the impact of Chinese exports on their domestic industries.
Washington and Beijing have maintained a fragile trade truce despite periodic tensions and are exploring reciprocal tariff cuts on about $30 billion of goods from each side.
Trade is expected to remain an important issue as US President Donald Trump and Chinese President Xi Jinping prepare for a meeting later this month.
