AI Demand Boosts Chinese and Taiwanese Exports in May

China’s exports rose more than expected in May, buoyed by strong demand for electronics, especially AI-related chips, as well as cars, according to Asharq Al-Awsat. The report said the export rebound reflects how the global artificial intelligence boom is feeding demand for Chinese-made components and hardware.

The latest trade data adds to signs that the AI cycle is supporting parts of China’s manufacturing sector even as other areas of the economy remain under pressure. Export growth has become an important source of momentum for Beijing as it tries to stabilize growth, and the strength in chip-related shipments suggests that the technology supply chain remains a major driver of trade performance.

A separate report from Asharq Al-Awsat said Taiwan also recorded a sharp jump in exports, with the Ministry of Finance announcing that shipments rose 51.7% year on year to $78.48 billion, the second-highest monthly value in the island’s history. That surge was also attributed to demand tied to AI chips, underscoring how deeply the boom in artificial intelligence is reshaping trade flows across Asia.

The broader regional picture shows how concentrated the benefits of the AI boom have become, with exporters of semiconductors, electronics equipment and related industrial goods seeing the clearest gains. For countries such as China and Taiwan, those gains are helping offset weaker demand in other sectors and supporting manufacturing output tied to advanced technology.

At the same time, the trade data comes against a mixed global backdrop. Asharq Al-Awsat also reported that German industrial production rose less than expected in April, even as exports surprised to the upside, a sign that Europe’s largest economy is still struggling to generate sustained industrial momentum. That contrast highlights how uneven the recovery remains across major manufacturing centers.

For China, the stronger export performance matters because foreign demand remains one of the few reliable engines of growth while domestic consumption and property-sector activity continue to face challenges. If AI-related demand stays strong, it could keep supporting exports in the months ahead, though analysts will be watching whether the gains broaden beyond chips and electronics into a wider range of goods.