How has China's economy performed in 2026?

Official data released on Wednesday shows that China's foreign trade maintained sound momentum in the first three quarters of 2026, with both exports and imports growing rapidly and the overall growth rate reaching its highest level for the same period in five years.

Momentum in economic growth is evident from the figures. The country's total imports and exports rose 18.8% year on year to 39.94 trillion yuan (about $5.96 trillion) in the January-September period. Growth also accelerated through the year, with the expansion rising from 15.3% in the first quarter to 18.3% in the second quarter and 22.3% in the third quarter, data from the General Administration of Customs (GAC) shows.

But the figures show more than just growth in China's external trade. They also demonstrate how artificial intelligence (AI) is reshaping the country's trade and economy, how close economic ties with other countries are strengthening its global integration, and how advances in manufacturing are diversifying its export mix.

Global investment in AI boosts sector export growth

The global boom of investment in AI has driven up needs for computing power, hardware and underlying energy structure, making the relevant industries a key source of explosive economic growth for China.

Wang Jun, GAC's deputy head, said that China's exports of integrated circuits surged 99.1% year on year in the first three quarters, while exports of computer parts and accessories more than tripled and those of storage components, including solid-state drives, more than doubled. Exports of data-processing equipment, including servers, rose 7.2%, and sales of terminal products, including AI glasses and intelligent bionic robots, have continued to rise in the global market.

China's success in the AI-driven manufacturing sector results from providing other countries with what they need. According to Wang, China's exports ensure a stable supply of intermediate products for the global computing power industry chain, supports the development of global computing infrastructure, and expands the range of global AI applications.

Enhanced economic ties with the world

China's trade growth also reflects how the country is deeply integrated into global supply and demand chains.

One telling figure is that intermediate goods accounted for more than half of China's total exports in the first three quarters of the year. Intermediate goods — products, materials or components used as inputs to produce other goods — reflect how close trade ties are between countries.

Among these trading partners, APEC economies accounted for more than 60% of China's total foreign trade in the first three quarters of the year. Lyu Daliang, director of the GAC's Department of Statistics and Analysis, said China's imports and exports with other APEC economies reached 24.07 trillion yuan, up 23.9% year on year.

What drives China's strength in trade?

With the expansion rate jumping from 15.3% in the first quarter to 18.3% in the second quarter and now to 22.3% in the third quarter, China's export capacity keeps unleashing its potential as the year unfolds.

Experts say these figures reflect China's strong manufacturing base and a shift from quantity-driven growth to quality improvement.

"From the perspective of supply and demand, China's export capacity is underpinned by its strong manufacturing capabilities," said Zhou Mi, a senior research fellow at the Institute of American and Oceania Studies of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. 

"Chinese products are not only available in large quantities, but are also continuously improving in quality and technological sophistication, helping countries meet their own development needs," Zhou added.