GAC data shows total imports and exports value at $1.63 trillion in January-March period
China’s foreign trade surged to a record high in the first quarter of 2026, signalling renewed momentum in the world’s second-largest economy despite a turbulent global backdrop marked by geopolitical tensions and slowing demand.
Official data released by the General Administration of Customs (GAC) showed that total imports and exports reached 11.84 trillion yuan ($1.63 trillion) in the January-March period, marking a 15% year-on-year increase. This is the first time China’s first-quarter trade has exceeded the 11 trillion yuan mark, while the growth rate is the fastest in nearly five years.
According to Xinhua and CGTN, officials described the performance as a “strong start” driven by a combination of resilient demand, diversified markets and the growing dynamism of private enterprises.
Exports rose by 11.9% to 6.85 trillion yuan, showing steady external demand for Chinese goods, while imports surged by 19.6% to 4.99 trillion yuan — a rare instance of import growth outpacing exports. Analysts said the trend underscores strengthening domestic demand and a more balanced trade structure.
Wang Jun, deputy head of the GAC, said the figures highlight a stable foundation and “robust momentum” in China’s external trade, even as the global environment remains complex and uncertain. He added that China’s quarterly trade has now remained above 10 trillion yuan for 12 consecutive quarters, with growth returning to double digits since late 2022.
A key feature of the first-quarter data is the expanding role of private enterprises, which continue to drive trade growth. Private firms accounted for 6.78 trillion yuan in imports and exports, up 16.2% year-on-year, raising their share of total trade to 57.3%. Their growing prominence reflects increased competitiveness, flexibility and innovation in both traditional and emerging markets.
Foreign-invested enterprises also posted solid performance, recording 3.47 trillion yuan in trade, a 16.1% increase and their eighth consecutive quarter of growth. This suggests that China remains an attractive destination for global investors despite rising geopolitical risks.
Read More: SBP opens formal banking to licensed virtual asset service providers
China’s strategy of diversifying trade partners appears to be paying off. Trade with Belt and Road Initiative (BRI) partner countries rose by 14.2%, accounting for more than half, 51.2%, of total trade. Meanwhile, trade with ASEAN and Latin America grew by 15.4%, while Africa saw a notable increase of 23.7%.
Trade with the European Union and the United Kingdom also posted double-digit gains, effectively offsetting a decline in trade with the United States. Economists said this diversification is strengthening China’s resilience against external shocks and reducing dependence on any single market.
The composition of trade also points to structural shifts in China’s economy. Exports of high-value and green products recorded significant growth, with electric vehicles, lithium batteries and 3D printers seeing sharp increases. These trends reflect the country’s push toward advanced manufacturing and low-carbon technologies.
On the import side, strong growth was driven by rising demand for mechanical and electrical products, as well as consumer goods. Imports of such products increased by over 21%, while consumer goods imports rose by 5.4%, indicating a steady recovery in domestic consumption.
Experts said the surge in imports, nearly 20% growth, is particularly noteworthy. Tu Xinquan, a trade expert at the University of International Business and Economics, described the trend as “relatively rare,” noting that it reflects a broad-based rebound in domestic demand that has been building since late last year.
“The recovery is still very strong,” Tu said, adding that both imports and exports point to “a very active growth trend” in overall trade.
Looking ahead, analysts cautioned that global uncertainties, including escalating tensions in the Middle East, fluctuating energy prices and fragile supply chains, could pose risks to trade performance in the coming months. The World Trade Organisation has already warned that global trade growth could slow significantly in 2026.
However, Chinese officials and experts remain cautiously optimistic. They argued that the country’s strong industrial base, complete supply chains and expanding domestic market provided a buffer against external shocks.
Tu said that rising energy prices in other economies could even enhance China’s competitive edge by creating supply shortages elsewhere. “China’s supply capacity is very strong,” he said, adding that this could improve pricing power and support export values even if volumes remain stable.
China has also reaffirmed its commitment to further opening up its economy. Officials stressed that the country aims to serve not only as the “world’s factory” but also as the “world’s market”, with policies designed to boost imports and create opportunities for global businesses.
Measures such as expanded zero-tariff access for least developed countries and increased trade with emerging markets are expected to reinforce China’s role as a stabilising force in the global economy.
Despite lingering uncertainties, the first-quarter data suggest that China’s foreign trade has entered 2026 on a solid footing. With strong domestic demand, diversified markets and a shift toward higher-value exports, the outlook for the near term remains positive — offering a degree of certainty in an otherwise volatile global trade environment.
