China's exports grew at a faster-than-expected pace in May, supported by strong overseas demand for semiconductors, electric vehicles, and other technology-related products, even as geopolitical tensions and elevated energy prices weighed on global trade.
Export and Import Growth
Data released by China's customs agency on Tuesday showed exports rose 19.4% year-on-year in May, up from April's 14.1% increase. Imports also strengthened, climbing 27.4% from a year earlier, compared with 25.3% growth in April.
US Rebound Drives Growth
A key driver was a sharp rebound in shipments to the United States. Chinese exports to the US surged more than 35% in May from a year earlier, marking the strongest growth since early 2021 and accelerating from an 11% rise recorded in April. The jump comes after months of weakness in exports to the US following President Donald Trump's return to the White House. During that period, Chinese exporters increasingly redirected shipments to markets in Southeast Asia and Europe.
Technology Products at the Core
Technology products remained at the centre of China's export growth. Exports of semiconductors more than doubled by value in May compared with a year earlier, while automobile exports rose nearly 40%. The country's largest electric vehicle maker, BYD, reported overseas sales of more than 160,600 vehicles in May, an increase of 80% from the previous year.
Analysts said global demand linked to artificial intelligence and the transition to cleaner technologies is helping sustain China's trade momentum. Lynn Song, chief economist for Greater China at Dutch bank ING, noted, "Ships, chips, autos and batteries continue to find strong demand amid the global tech boom," adding that higher prices across the technology supply chain have also boosted the value of exports. Wei Li, Head of Multi-Asset Investments at BNP Paribas Securities, described exports as a "shock absorber" for the Chinese economy, helping offset the impact of rising global energy prices and inflationary pressures.
Outlook and Diplomatic Context
Looking ahead, analysts expect advanced semiconductors and electric vehicles to remain major contributors to export growth through the rest of 2026. Recent diplomatic engagement between Beijing and Washington has also improved sentiment. Trump's visit to Beijing in May and meetings with Chinese President Xi Jinping raised hopes of a more stable economic relationship, with both sides agreeing to establish trade and investment boards.
However, economists cautioned that the sharp rise in exports to the US was partly driven by favourable comparisons with last year. Shipments had slumped after Trump's "Liberation Day" tariffs took effect in April 2025, creating a low base for annual growth calculations.
Economic Targets
China has set an economic growth target of 4.5% to 5% for 2026, slightly lower than the "around 5%" target for 2025 and its slowest expansion goal since 1991. ING's Song said the strong trade performance at the start of the year should help keep the economy on track to meet that objective.
