AI demand is fueling China’s economy: Chinese semiconductor exports surged +111% YoY in May, to a record $36 billion. This marks the largest annual increase in 13 years. Outbound shipments of computers and parts jumped +66% YoY, to ~$27 billion, the 2nd-largest on record. This surge was largely price-driven, with Chinese chip export volumes rising +2% over the same period, as global shortages caused by the AI data center buildout pushed semiconductor prices sharply higher. Together, chips and computers accounted for roughly half of China's total export and import growth in May. As a result, overall exports rose +19% YoY, while imports soared +27% YoY, leaving a trade surplus of $105.4 billion, the largest since January. AI infrastructure spending is reshaping the Chinese economy.