China Exports Surge 19.4% as US Trade Truce and Tech Demand Fuel Growth

China’s trade sector delivered strong performance in May, with exports rising from 14.1% to 19.4% yoy in US dollar terms, beating expectations of 15%. Imports also accelerated from 25.3% to 27.4%, exceeding forecasts and pointing to continued strength in both external and domestic demand. As a result, China’s trade surplus widened sharply from USD 84.8B to USD 105.43B, well above the expected USD 88.7B.

A key driver was the continued recovery in trade with the United States following the tariff truce reached last October. Exports to the US surged 35.4% from a year earlier, marking the strongest growth since March 2021, while imports from the US rose 20%. The rebound suggests trade flows have normalized significantly compared with last year’s tariff-war disruptions, providing an important boost to China’s manufacturing sector.

Technology exports were a standout performer. Shipments of automated data processing equipment surged 66.1% year-on-year, while exports of high-tech products rose 50.9%. Automobile exports also maintained strong momentum, increasing 39%. These figures highlight China’s growing competitiveness in higher-value manufacturing sectors and suggest global demand for technology-related products remains resilient despite concerns over slowing economic growth in major markets.

Regional trade data also pointed to strengthening supply-chain activity across Asia. Exports to Southeast Asia rose 24.3%, while imports from the region climbed 28.2%. Imports from South Korea jumped 84% to a record USD 26.7B, making it China’s largest import source among major trading partners. The strong rise in intermediate-goods imports suggests Chinese manufacturers are ramping up production to meet both domestic and overseas demand.