China's AI-Driven Exports Surge 36% to Record High

China's exports surged 36.3% year-on-year last month, driven by the AI boom, marking the largest percentage increase since early 2021 and far exceeding analyst expectations, according to new data reported by The Financial Times. The growth was fueled primarily by strong demand for Chinese AI technology, including chips and electronics, alongside increased exports of machinery and cars. This trajectory puts China on pace for a record annual trade surplus, having already reached $938 billion in the first nine months of this year, up from $875 billion in the same period last year. The rising exports are straining economic and geopolitical relations with the European Union and the US, with European officials fearing a "China shock 2.0" that could threaten domestic industries and jobs. Last week, the EU and China reached a preliminary deal to curb Chinese electric vehicle exports to Europe.