China's exports rose sharply in May, increasing by 19.4% year-on-year, according to data from the country's customs agency. This growth outpaced April's 14.1% increase and was attributed to robust shipments of technology-related products, autos, and artificial intelligence components, despite ongoing impacts from the Iran war [1]. Imports also saw significant growth, jumping 27.4% in May compared to a 25.3% rise in April [1].
Exports to the United States were particularly strong, surging more than 35% in May from the previous year, following an 11% increase in April. This marks a notable rebound, as shipments to the U.S. had declined for most months since President Donald Trump returned to the White House last year. Meanwhile, exports to Southeast Asia and Europe have also been strong [1].
The strength in exports has been supported by high demand for autos, technology, and AI-related products such as semiconductors and computing equipment. BYD, China's largest electric vehicle maker, reported selling over 160,600 vehicles abroad in May, an 80% increase from a year earlier [1]. Analysts such as Wei Li of BNP Paribas Securities (China) and Lynn Song of ING highlighted that exports are acting as a 'shock-absorber' for China's economy, helping it withstand global energy price spikes and benefiting from the global AI and green technology boom [1].
Recent meetings between President Trump and Chinese President Xi Jinping in Beijing have raised hopes for improved trade relations, with both leaders agreeing to establish boards of trade and investment. Chinese leaders have set an annual economic growth target of 4.5% to 5% for 2026, slightly below the 'around 5%' goal for 2025, which is the slowest expansion target since 1991. ING's Song noted that the strong start to the year should help China stay on track to meet its full-year growth target [1].
CONCLUSION
China's export and import figures for May indicate robust trade momentum, particularly in technology and autos, despite global uncertainties. Strong U.S. demand and positive analyst commentary suggest China is well-positioned to meet its economic growth targets for the year. Recent diplomatic developments may further support trade prospects.