Financial News: China Exports Surge Despite Geopolitical Tensions

China Exports Surge Despite Geopolitical Tensions

(RTTNews) - China's exports surged in May fueled by increased shipments of automobiles and artificial intelligence-related products, official data revealed Tuesday.

Exports logged a double-digit growth of 19.4 percent in May, following an increase of 14.1 percent in April. The growth outpaced economists' forecast of 15.0 percent.

Shipments to the US advanced 35.4 percent in May largely due to the base effect as trade war peaked in May 2025.

At the same time, annual growth in imports accelerated to 27.4 percent from 25.3 percent in the previous month. Economists had forecast an annual growth of 25.0 percent.

Consequently, the trade surplus rose to $105.43 billion from $84.8 billion a month ago. The surplus was well above the expected level of $92.1 billion and also marked the biggest since January.

China's exports to the Association of Southeast Asian Nations increased 24.3 percent and that to European Union gained 7.6 percent.

ING economist Lynn Song said China's import growth remains mainly a tech story rather than an energy story. Crude oil import volumes declined notably in May.

China's large oil reserves afford it more flexibility to adjust imports strategically, the economist noted. But if no resolution is reached in the Middle East and supply disruptions and higher energy prices persist, it is reasonable to expect Chinese importers to return to the market at more regular levels, said Song.

The economist said the external demand engine remains one of China's key drivers this year.

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