China's trade surplus tops $1 trillion again as exports jump 35%

The customs numbers. In yuan, October exports were 2.79 trillion, up 28.7%, and imports 2.08 trillion, up 34.7%. Total trade for the month was 4.87 trillion yuan, up 31.2%. For ten months trade reached 44.81 trillion yuan, up 20%. Growth looks bigger in dollars because the yuan strengthened over the year.

The surplus. According to AP, the October surplus narrowed to $105.3 billion from $133.5 billion in September as imports grew faster than exports. Still, ten months add up to $1.04 trillion. Last year's record was $1.2 trillion. The surplus with the US was $32.71 billion in October versus $34.01 billion a month earlier.

What ships. Machinery and electronics exports for ten months were 16.81 trillion yuan, up 25.2%. Labour-intensive goods grew just 2.4%. Machinery and electronics imports rose 35%. Crude imports for ten months were 400 million tonnes, 15.1% less than a year ago, though Reuters says October volumes were the highest since March.

Partners. Over ten months trade with ASEAN rose 24.2%, with the EU 8.5% and with the US 6.3%.

Risks. Macquarie expects exports to speed up in the fourth quarter and slow from early 2027. Moody's Analytics warns that if the AI boom cools, cheaper chips and electronics would hit China's exports hard.

Confirmed facts

• China's exports rose 35.2% year on year in October 2026 in dollar terms, against a 33.5% forecast; September growth was 36.3%.^[2]
• October imports rose 41.6% year on year against a 32% forecast.^[2][3]
• The January-October trade surplus was $1.04 trillion, above $1 trillion for a second straight year.^[2][3]
• The October surplus narrowed to $105.3 billion from $133.5 billion in September.^[3]
• In yuan, October exports were 2.79 trillion (+28.7%) and imports 2.08 trillion (+34.7%).^[1]
• Ten-month trade was 44.81 trillion yuan (+20%); machinery and electronics exports were 16.81 trillion (+25.2%).^[1]
• Crude imports for ten months were 400 million tonnes, down 15.1% from a year earlier.^[1]
• The surplus with the US was $32.71 billion in October after $34.01 billion in September.^[2]

Implications

• ConfirmedFor a second year China is selling the world a trillion dollars more than it buys.
• Our readingA growing surplus gives more arguments to backers of new tariffs in the EU and US. This is our inference.
• Our readingStrong imports may point to demand for AI equipment inside China. This is our inference.

Still unknown

• How the Xi-Trump meeting at APEC ends
• How long demand for AI hardware lasts
• Whether the EU adds new curbs on Chinese imports

Who it affects

China, United States, European Union. People who watch the yuan, Asian stocks and trade wars

Sources

1. General Administration of Customs of China via Chinanews: 海关总署：今年前10个月我国货物贸易进出口同比增长20% November 10, 2026 · official
2. Reuters via AOL: China's trade surplus soars past $1 trillion as AI boom powers exports November 10, 2026 · media
3. Associated Press via KARE 11: China's trade surplus surpasses $1 trillion for a 2nd straight year, as exports surge 35% November 10, 2026 · media