China's Foreign Trade Surges Unexpectedly in Early 2026 Despite Global Tensions

Beijing. China, the world's second-largest economy, has achieved unexpected success in its foreign trade during the first two months of 2026. Despite rising tensions with Washington and various trade restrictions, there has been a sharp increase in global demand for Chinese goods.

According to data released by China's General Administration of Customs, exports grew by 20 percent in January and February. China typically releases combined data for these two months to balance out trade fluctuations caused by the New Year holidays. This level of growth has surprised major global economists, who had projected much lower increases.

China's domestic market is currently grappling with serious issues such as the downturn in real estate transactions, low consumer spending, and a declining population. In this scenario, foreign exports have become the main driver accelerating the Chinese economy. Exports have significantly improved, particularly due to increased demand for electronics, agricultural products, and machinery.

The statistics show that trade with European countries increased by 27.8 percent, while exports to the Association of Southeast Asian Nations (ASEAN) saw a nearly 30 percent surge. This confirms that China is gradually strengthening its hold in regions other than the US market.

• Shadow of US-Iran Conflict

While exports have increased, trade relations with the United States have further chilled. Exports to the US have declined by more than 10 percent due to heavy tariffs imposed by US President Donald Trump and strict policies aimed at correcting the trade imbalance. Trump is scheduled to visit China in April and meet with Chinese President Xi Jinping, an event being closely watched globally.

Meanwhile, China is also dealing with the impact of the ongoing Israel-Iran conflict in West Asia on global energy markets. Despite disruptions in energy supply, China has managed to maintain its production capacity and export momentum.

• Export Pressure on Economic Targets

China has set an economic growth target of 4.5 to 5 percent for this year, slightly lower than last year's target of 5 percent. Last year, China succeeded in meeting its target largely on the strength of its exports. Due to the domestic market slowdown, Beijing appears to be strategically relying on exports as the primary engine for economic growth this year as well.