China's exports accelerated in June, jumping 27 per cent from a year earlier thanks partly to the boom in artificial intelligence, the customs agency says.
The increase in exports in June was much better than economists had expected. Exports rose 19.4 per cent year-on-year in May.
Imports in June surged 36 per cent, better than May's 27.4 per cent year-on-year growth, with analysts attributing the expansion in part due to the Iran war driving up import costs.
China recorded a trade surplus of $US125.6 billion in June, widening from $US105.4 billion in the previous month.
"With the rapid growth of AI, our imports and export of products in this field are robust," Wang Jun, vice-minister of China's General Administration of Customs, said at a news conference in Beijing.
He said trade in electronic components, computer spare parts, and other computing hardware jumped nearly 57 per cent to 5.1 trillion yuan ($A1 trillion) in the first half of 2026.
Other products such as AI glasses, AI translating devices, powered exoskeletons and other smart products are also evolving.
"Trade values took another big leg up in June," Julian Evans-Pritchard, head of China Economics at Capital Economics, wrote in a note on Tuesday.
"This predominantly reflects the recent surge in semiconductor prices on the back of the AI boom. But even putting that aside, foreign demand for Chinese goods remains robust."
China's exports of vehicles, especially EVs, and other tech-related products have boomed as rapid adoption of AI increases the need for semiconductors and other electronic equipment.
The strength in export manufacturing has helped to offset prolonged weakness in domestic spending and investment due to a prolonged downturn in the property industry.
In January-June, China's exports climbed 17.6 per cent from a year earlier, while imports jumped 26.6 per cent, according to the customs data.
Policymakers including those in the US and in Europe have express alarm over rising trade deficits with China.
In order to bypass barriers such as higher tariffs, Chinese businesses have been moving factories to regions such as Europe.
China has also been exporting more to Southeast Asia, Latin America and Africa.
China is set to announce its economic growth data for the April-June quarter on Wednesday.
Chinese leaders have set an annual growth target of 4.5 per cent to 5.0 per cent for 2026, slightly lower than the 5.0 per cent growth in 2025.