China’s AI exports of high-end electronics and manufactured goods surged in 2025, helping the country post a record trade surplus despite softer demand from the United States, according to a new report by ICICI Securities.
The report said China’s export mix has shifted sharply toward higher-value products, with AI-linked electronics, mechanical equipment, electrical goods, and other advanced manufacturing items now accounting for nearly 85% of total shipments. This transformation has strengthened export resilience and reduced the impact of U.S. tariffs.
Exports rose 6.6% year-on-year in December 2025, beating market expectations and bringing full-year export growth to 5.5%. The shift toward technology-intensive products supported a record trade surplus of $1.18 trillion for the year.
While shipments to the United States have declined amid ongoing trade tensions, China has increasingly redirected exports toward markets such as ASEAN countries, the European Union, Latin America, and India.
The report said this diversification strategy, combined with a relatively undervalued exchange rate and strong global demand for AI-related hardware and advanced manufacturing products, has helped sustain momentum outside the U.S. market.
Mechanical, electrical, and high-tech products recorded double-digit growth and are benefiting from global investment in artificial intelligence and digital infrastructure.
These categories are also less vulnerable to tariffs due to China’s dominant manufacturing position. In contrast, traditional export segments such as garments, textiles, and toys, which together account for about 8% of total exports, continued to lag.
Imports rebounded in December, driven by higher purchases of mechanical, electrical, and high-tech goods, partly reflecting re-export activity. Energy imports also increased as buyers took advantage of softer global prices, suggesting a restocking cycle.
Additional signs of restocking were visible in base metals, particularly iron ore and copper ore, potentially in anticipation of increased infrastructure spending in the first half of 2026.
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