China's trade surplus has surpassed $1 trillion for the second consecutive year, driven by a surge in semiconductor demand due to increased global investment in artificial intelligence, strong automobile exports including electric vehicles, and growth in the shipbuilding industry.
According to the General Administration of Customs, China's goods trade surplus from January to October this year reached $1.0425 trillion (approximately 1,400 trillion won), an 8.1% increase from $964.8 billion during the same period last year. After exceeding $1 trillion for the first time in history last year, China has again crossed this threshold before November.
In October alone, the trade surplus was $105.2 billion, a 19.6% increase compared to the same month last year. However, this figure represents a 21.2% decrease from September's surplus of $133.53 billion. Exports in October totaled $412.33 billion, up 35.2% year-on-year, while imports surged 41.6% to $307.05 billion, leading to a reduced monthly surplus compared to the previous month.
The key driver of exports has been semiconductors. From January to October, China's integrated circuit exports reached 2.338 trillion yuan, a 101.9% increase year-on-year. In dollar terms, this amounted to $341.1 billion, reflecting a 111.1% rise. Notably, in October, integrated circuit exports soared to $39.594 billion, a 137.1% increase compared to the same month last year. Exports of memory components also rose by 132.5%.
While the volume of semiconductor exports increased by only 3.2%, the value more than doubled, attributed to rising export prices and a greater share of high-value products. Exports of computers and related components also grew by 53.6%.
Automobiles have emerged as another major growth driver for exports. From January to October, automobile exports increased by 45.8%, totaling 9.74 million units. In October, automobile exports reached $19.692 billion, a 37.6% increase year-on-year. Notably, exports of new energy vehicles, including electric and plug-in hybrid cars, surged by 144.7% to 582,000 units in October. Chinese automakers have been expanding exports of plug-in hybrids to avoid additional tariffs on electric vehicles imposed by the European Union, which has also agreed to limit import quotas on hybrid vehicles.
The shipbuilding industry has also contributed to the export growth. From January to October, ship exports totaled 399.4 billion yuan, a 22.4% increase compared to the same period last year. Exports of wind power equipment and components rose by 19.7%. Exports of industrial robots increased by 17.8%, while 3D printer exports surged by 104.8%, indicating strengthened competitiveness in advanced manufacturing. Exports of so-called new three products, including solar products, lithium batteries, and electric vehicles, also rose by 46.5%.
Diversification of export markets has supported the expansion of the trade surplus. From January to October, trade between China and the Association of Southeast Asian Nations (ASEAN) increased by 24.2%, while trade with the European Union rose by 8.5%. Trade with the United States also grew by 6.3%. This shift is seen as a response by Chinese manufacturers to U.S. tariff barriers and geopolitical uncertainties, leading them to expand their export markets to Southeast Asia and Europe.
* This article has been translated by AI.
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