China: Structural export strength and chip constraints – Standard Chartered

Standard Chartered economists Carol Liao, Moriarty Lam and Shuang Ding highlight that China has become the world’s largest exporter of AI‑related goods, with exports spanning raw materials to hardware and applications. They note that China’s low‑cost energy, scalable computing infrastructure and strong manufacturing support this position, but emphasize ongoing reliance on high‑end chip imports and geopolitical risks to future AI trade development.

AI exports strong, chip reliance persists

"Global AI‑related trade has expanded rapidly and is increasingly a structural driver of cross-border goods flows."

"China is now the largest exporter of AI‑related goods, according to the World Trade Organisation (WTO)."

"China’s AI‑related trade is not limited to ICs, however, and spans the value chain broadly – from raw materials to hardware manufacturing, AI technology development and application deployment."

"China’s strength in AI trade is asymmetric."

"Looking ahead, China’s low‑cost energy supply, scalable computing infrastructure and strong manufacturing capabilities should continue to underpin its comparative advantages in AI‑related trade."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)