China’s AI-linked exports surged in May and June, aiding a rebound in the PPI and delivering strong profits for electronics and semiconductor firms.
China’s dollar‑denominated exports tied to artificial intelligence climbed 19.4% in May and jumped 27% in June, making AI‑linked goods a primary source of the trade rebound.
The export surge has helped revive the Producer Price Index (PPI) and produced triple‑digit profit growth for electronics and semiconductor firms, and China’s core AI industry exceeded 1.2 trillion yuan ($177 billion) and 6,200 enterprises in 2025, Li Lecheng, Minister of Industry and Information Technology, said in an announcement.
Global demand for computing power is the proximate driver of the export gains, and the boom has coincided with a sharp rise in fixed‑asset investment in AI‑related fields, indicating the recovery is concentrated in hardware and component supply chains.
Economists warn that while the AI upswing lifts industrial profits, its concentrated nature risks exacerbating deep‑seated structural inequalities within China’s economy.
