China’s AI trade wave generates $500 million every hour in exports: Report

Chinese exports climbed 14 per cent in April from a year earlier to a record US$359 billion, reported Bloomberg. That means Chinese companies sold nearly $500 million worth of goods every hour during the month.

A large part of that growth came from products linked to artificial intelligence. Goldman Sachs and Nomura estimated that semiconductors, computers and other AI-related products made up about half of China’s export growth in April.

AI exports from China

Chip exports from China doubled compared to last year. Sales of laptops, tablets and related computer equipment jumped 47 per cent, according to customs data.

At the same time, China sharply increased imports of foreign high-tech goods. Purchases of advanced technology products from abroad surged 42 per cent.

The AI boom also lifted other Asian economies. Semi-conductor exports from South Korea and Taiwan rose in recent months as global demand for data centres and AI hardware increased, reported Bloomberg.

Major US technology firms helped fuel this demand. Companies including Alphabet and Meta Platforms plan to spend as much as US$725 billion this year on capital investments, mostly tied to AI infrastructure and data centres.

Those investments created huge demand for servers, chips, networking equipment and electronic components. Much of that supply chain runs through China and other Asian manufacturing hubs.

Economic tension between US and China

The US continues to impose export controls on advanced technologies. Meanwhile, China has responded with restrictions on rare earth exports and efforts to build its own semiconductor industry.

The share of Chinese exports going to the United States has fallen to around 9 per cent. That marks the lowest level on record and stands at roughly half the level seen during 2017 and 2018.

China emerged as the world’s largest supplier of AI-related goods last year, according to research from Standard Chartered economists. The country still depends on foreign suppliers for some advanced chips, but it dominates production of many older-generation semiconductors known as legacy chips.

These chips may use older technology, but they remain critical for consumer electronics, cars, industrial equipment and communication systems.

During US President Donald Trump’s current term, the value of China’s integrated circuit exports roughly doubled. Shipments topped US$31 billion in April for the first time, reported Bloomberg.

Trade between the US and China showed signs of recovery as well. Chinese exports to the US posted their biggest increase in more than a year after months of decline.

Technology controls remain one of the biggest disputes between both countries. Last year, tensions over export restrictions triggered a major standoff after China limited rare earth shipments to American buyers.

The two sides later reached a temporary truce after Trump’s last meeting with Chinese President Xi Jinping. Under that agreement, the US paused some technology restrictions for one year while China restored access to rare earth materials.

Those issues will likely dominate talks again when Trump arrives in Beijing this week for a highly anticipated summit with Xi.

Can China maintain this export momentum?

The AI boom arrives at a difficult moment for China’s broader economy. Manufacturers face rising raw material costs due to the war involving Iran and disruptions in global energy markets.

China’s crude oil import bill increased 13 per cent from last year even though the actual volume of imported oil fell 20 per cent. Rising energy prices placed pressure on factories and transport costs.

Exports to the Middle East and North Africa also weakened sharply. Shipments to the region dropped 43 per cent in March from a year earlier, reported Bloomberg.

Traditional labour-heavy industries such as clothing and toy manufacturing continue to struggle under these pressures. Yet new sectors have stepped in to support China’s economy.

Electric vehicles became another major export engine. Chinese car exports rose 54 per cent during the first four months of 2026 after climbing 21 per cent last year. Overseas vehicle shipments reached more than US$16 billion in April, the second-highest monthly total ever recorded.

Higher oil prices helped electric vehicle makers as consumers and governments searched for alternatives to fuel-powered transport.

The AI boom also boosted China’s imports. Total imports climbed 25 per cent in April to US$275 billion. Imports from South Korea surged more than 60 per cent, while purchases from Taiwan increased over 20 per cent.

Economists now expect China’s imports to grow faster than exports this year for the first time since 2021.

A major reason behind the trade surge was rising semi-conductor prices caused by a global chip shortage. Nomura estimated that higher chip prices alone contributed 4.5 percentage points to China’s export growth in April.