China’s AI Hardware Exports Post 20-Year High as Apparel and Furniture Retreat
Updated
Updated · isimarkets.com · Jun 19
China’s AI Hardware Exports Post 20-Year High as Apparel and Furniture Retreat
3 articles · Updated · isimarkets.com · Jun 19
Summary
AI-related hardware became China’s strongest export growth driver in 2025-26, marking its best run in 20 years as trade continues to prop up the economy.
That outperformance reflects an “AI effect” similar to the US data-center buildout, with high-tech goods tied to artificial intelligence standing out while broader domestic consumption remains weak.
Traditional labor-intensive exporters—the “old three,” including apparel and furniture—moved in the opposite direction, underscoring a shift in China’s manufacturing momentum.
The divergence suggests China’s external growth is becoming more dependent on advanced technology exports rather than the low-cost manufacturing sectors that powered earlier industrialization.