China’s exports surge despite waning trade with the US
China’s exports increased by nearly 22 percent in the first two months of 2026 compared to the previous year; This is due to an increase in shipments of computer chips, automobiles and electronics.
Export figures announced by China’s customs administration on Tuesday were much better than economists had predicted.
They far exceeded the annual growth rate of 6.6 percent recorded in December.
Shipments to the United States fell 11 percent in January and February, down from a 30 percent drop in December.
Exports to the European Union increased by almost 28 percent, while exports to Latin America increased by 16 percent.
Exports to the rest of Asia, including Japan and India, also rose sharply.
China’s exports have been a bright spot for its economy despite tensions with the US China’s exports will grow by 5.5 per cent in 2025, with its trade surplus reaching a record high of nearly US$1.2 trillion (A$1.7 trillion).
Higher shipments to other regions helped offset weak exports to the United States after President Donald Trump imposed a variety of higher tariffs on imports from many countries.
The explosion in the use of artificial intelligence is driving strong demand for computer chips of all types.
China’s semiconductor exports increased by nearly 73 percent in value terms in the first two months of 2026; This was driven in part by rising prices as the world faced memory chip shortages.
Automobile exports increased by 67 percent, and mechanical and electrical products increased by 27 percent.
Trump’s planned visit to Beijing at the end of March is being closely watched for the possible extension of the trade truce reached between the two countries in October 2025; This could be positive news for China’s exports to the US.
A recent U.S. Supreme Court ruling against Trump’s broad tariffs resulted in lower tariffs for countries including China.
China’s total imports in January and February increased by almost 20 percent, compared to an annual increase of 5.7 percent in December.
However, imports from the United States fell by approximately 27 percent compared to the previous year.
China’s global trade surplus in the January-February period was 213.6 billion dollars. Trade data is generally aggregated between January and February each year to help offset the seasonal effects of the Lunar New Year festival.
The slowing domestic economy, triggered by a years-long decline in the real estate sector, has put pressure on the world’s second largest economy.
Last week, Chinese leaders announced an economic growth target of between 4.5 percent and 5.0 percent for 2026, the lowest rate since 1991.
The war in the Middle East has increased uncertainty about the outlook for trade and China’s own energy security.
An effective blockade of the Strait of Hormuz, the transit point for much of the world’s oil and gas trade, could restrict China’s access to relatively cheap Iranian oil and also disrupt its broader trade with the region.
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