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China hits $1 trillion trade surplus milestone for second year in a row

By · Via Times of India · Published by Everything Blog

In short

Beijing achieved a $1.04 trillion trade surplus during the first 10 months of the year, crossing the threshold a month faster than it did in 2025. October alone saw exports surge by 35.2% and imports climb 41.6%, generating a single-month surplus of $105.3 billion. This heavy export reliance has provoked calls from European leaders for tighter restrictions on hybrid vehicles, while future Chinese purchases of American farm goods remain contingent on reciprocal tariff cuts.

Key points

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  • European efforts to limit hybrid car imports have prompted manufacturers to front-load th…: European efforts to limit hybrid car imports have prompted manufacturers to front-load their shipments abroad.
  • The escalating trade imbalance will serve as a focal point for upcoming bilateral talks b…: The escalating trade imbalance will serve as a focal point for upcoming bilateral talks between American and Chinese leaders.

Sources checked by our analysis pipeline: 1

China's trade surplus crossed $1 trillion in the first 10 months of the year, as strong global demand for high-tech products, fuelled by the race to build artificial intelligence (AI) infrastructure, helped offset weak domestic consumption.

The surplus reached $1.04 trillion between January and October, according to customs data released on Tuesday.

China has now recorded a trade surplus of more than $1 trillion for a second consecutive year, reaching the milestone a month earlier than in 2025.

Exports rose 35.2% in October from a year earlier in US dollar terms, slightly below September's 36.3% increase but higher than the 33.5% growth forecast by economists in a Reuters poll.

Imports grew 41.6%, accelerating from 31% in September and beating the poll's median forecast of 32%.

Despite the stronger import growth, China's trade surplus narrowed to $105.3 billion in October from $133.5 billion in September.

The export performance reflects China's growing reliance on overseas demand as subdued domestic consumption and a prolonged property market downturn weigh on its economy.

The global AI investment boom has supported sales of Chinese technology products,…

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