China’s booming tech exports give Beijing ‘wind in its sails’ for Trump summit

Driven by global appetite for artificial intelligence, China’s computing hardware exports have emerged as a pivotal new engine for growth, providing Beijing with strategic leverage as US tech titans accompany President Donald Trump on a high-stakes visit to the Chinese capital this week, according to analysts.

Chinese trade received another significant boost from the technology sector in April, as integrated circuit (IC) export value doubled year on year to US$31.09 billion, according to data released last week by the General Administration of Customs. Volume rose 3.7 per cent to 32.04 billion units.

Meanwhile, exports of automated data processing machines and parts – which include computers, laptops and servers – jumped 47.6 per cent year on year to US$23.81 billion. The two sectors alone accounted for roughly half of China’s total export growth last month, according to a Monday note by Bank of America (BofA).

The prominent role of tech products in April’s trade data reflects how computing-related goods have become a “new and important growth driver for China’s exports”, Citic Securities analysts said in a note on Monday, citing surging global demand in AI.

“China’s economy is now facing twin shocks: AI boom and Iran crisis. So far, the AI boom has more than offset the drag from the Iran crisis,” said Macquarie Group’s chief China economist Larry Hu.

The official numbers were released days ahead of a highly anticipated meeting between President Xi Jinping and Trump, who will be joined by US tech executives including Tesla CEO Elon Musk, Apple’s Tim Cook and Meta Platforms’ president and vice-chairman Dina Powell McCormick.