New Delhi: China’s trade surplus exceeded $1 trillion for the second consecutive year, reaching $1.04 trillion between January and October 2026, according to official data released on Tuesday (November 10) the Associated Press reported.The country’s exports rose 35.2% year-on-year in October, driven largely by high-tech goods such as semiconductors and automobiles. Imports grew 41.6% during the same period, the report said.China’s trade surplus fell to $105.3 billion in October from $133.5 billion in September, however, the country is on track to surpass its record trade surplus of $1.2 trillion recorded last year according to the news agency.Economists expect Chinese exports to remain strong for the rest of the year, led by electronics and automobiles. However, overcapacity in several industries, excess domestic savings and weak domestic demand are pushing manufacturers to sell more goods overseas, AP reported.“It comes down to product quality, or rather increasingly, the lack of it across the industry, since there’s significant homogenisation,” Cinders Zhou, whose company makes eyewear, told AP. “That has forced everyone to compete on price,” she said, while talking about the slowdown in the Chinese economy, which has intensified competition in the market.Trade restrictions imposed by the European Union, along with higher US trade barriers and tariffs, also pose risks to China’s export growth, the report said. Chinese officials have however maintained that Beijing is not seeking to expand its trade surplus but wants more balanced global trade.China’s exports could also be affected if the artificial intelligence boom slows down or reverses. Such a development could lower chip and electronics prices and reduce shipping volumes, the report said.Asia-Pacific Economic Cooperation leaders’ summitTrade is expected to be among the key issues during the planned meetings between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation leaders’ summit in Shenzhen later this month.A two-month extension of the US-China trade truce until January has provided some relief to Chinese exporters, although its longer-term prospects remain uncertain, AP reported. US and European trade policies have made it more difficult for Chinese businesses to expand in those markets.Strong exports have helped compensate for lower domestic demand in China. The country’s economy is forecast to meet Beijing’s annual growth target of 4.5-5% in 2026, slightly below the 5% growth recorded last year, the report said.