China exports hit record $412B in June as AI boom drives demand

China's exports surged to a record $412.4 billion in June, jumping 27% from a year earlier and far exceeding economists' expectations, as the global artificial intelligence investment wave and strong demand for electric vehicles continued to power the country's factories even as its domestic economy struggled.

AI and EV Shipments Drive the Surge

The General Administration of Customs released the data on Tuesday, showing exports accelerating sharply from a 19.4% gain in May. Economists polled by Bloomberg had forecast a 19% increase, while a Wall Street Journal News Corp ↘ 1.32% survey projected 18% growth. Imports also beat expectations, rising 36% to $286.8 billion, pushing the monthly trade surplus to $125.6 billion.wsj+3

The record performance was driven largely by soaring semiconductor prices tied to the AI boom. Reuters Thomson Reuters Corporation ↘ 1.06% reported in May that memory chip prices were rising 20% month-on-month, contributing to a 111% year-on-year surge in integrated circuit exports. Exports of automated data processing equipment jumped 66.1% in value terms during May, with high-tech products up 50.9%. The South China Morning Post reported that AI products and robotics extended "positive momentum seen in previous months" while "shrugging off geopolitical headwinds".scmp+1

Green technology exports surged by a third in the first half of the year, according to Semafor, with demand for EVs pushing the number of cars shipped in a single month above one million for the first time.semafor

Oil Imports Collapse to Near-Decade Low

In stark contrast, China's crude oil imports plunged 41% year-on-year to 29.27 million tons — the lowest since October 2016 — as the country grappled with fallout from the Iran war that disrupted supply routes. Bloomberg reported that China had cut purchases by roughly 4 million barrels per day from usual levels since the conflict broke out in late February. Reuters noted that refinery run rates also hit a ten-year low due to weak domestic fuel demand.bloomberg+2

A Divided Economic Picture

The data underscored a widening divergence in China's economy. While its export machine is thriving on the back of global tech investment and the energy transition, domestic consumption remains sluggish. The Wall Street Journal noted that the strong outbound shipments offered "crucial support to an economy that continues to struggle with sluggish domestic consumption". In the first half of 2026, exports jumped 17.6% while imports rose 26.6%.wsj+1