China’s exports surged nearly 22 percent in the first two months of 2026 compared with the same period a year earlier, driven by strong global demand for semiconductors, automobiles and electronics.
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Data released by the General Administration of Customs of China on Tuesday showed that the export growth significantly exceeded economists’ expectations and was far higher than the 6.6 percent increase recorded in December.
Exports to the United States declined 11 percent during January and February, an improvement from the sharp 30 percent drop seen in December. Meanwhile, shipments to the European Union jumped nearly 28 percent, while exports to Latin America rose 16 percent.
Trade with Asian economies also strengthened, with exports to countries including Japan and India recording notable increases.
Exports have remained one of the strongest pillars of China’s economy despite ongoing trade tensions with the United States. In 2025, Chinese exports grew 5.5 percent as the country’s trade surplus reached a record $1.2 trillion.
A major driver of the recent export growth has been the booming demand for computer chips linked to the rapid expansion of artificial intelligence technologies. China’s semiconductor exports by value soared nearly 73 percent in the first two months of the year, partly due to rising global prices amid a memory chip shortage.
Automobile exports also rose sharply by 67 percent, while shipments of mechanical and electrical products increased 27 percent.
Recent developments in the United States have also influenced trade flows. A ruling by the Supreme Court of the United States against sweeping tariffs introduced by former president Donald Trump has resulted in lower tariffs for several countries, including China.
Economists believe exports are likely to remain strong in the near term due to easing tariff pressures and sustained global demand for semiconductors.
However, China faces several economic challenges. Total imports during January and February increased nearly 20 percent, though imports from the United States dropped almost 27 percent compared with the previous year.
China’s combined trade surplus for the two months reached $213.6 billion. Trade data for January and February is typically released together to offset seasonal fluctuations caused by the Lunar New Year holiday period.
Despite strong export performance, China’s domestic economy remains under pressure due to a prolonged downturn in the property sector. Chinese leaders recently set a growth target of 4.5 to 5 percent for 2026 — the lowest goal since 1991.
Global uncertainties are also rising due to the ongoing US-Israeli war on Iran. Analysts warn that disruptions around the Strait of Hormuz — a critical route for global oil shipments — could affect China’s energy supplies and trade flows.
Economists say a prolonged conflict could push oil prices higher, increase global inflation and weaken consumer demand abroad, potentially reducing overseas demand for Chinese goods.
