China’s trade balance grew more than expected in the first two months of 2026, as overseas demand for the country’s key exports remained strong after a stellar performance in 2025.
Trade balance grew to a surplus of $213.62 billion in the January-February period, government data showed on Tuesday. The print was well above expectations of $177.40 billion.
The strong surplus was driven chiefly by an outsized jump in exports, which surged 21.8% in the Jan-Feb period against expectations for a 7.1% increase.
The reading indicated that China’s massive export industry– a key growth engine for the country– remained strong after a record $1.2 trillion trade surplus in 2026.
Relief from a bulk of U.S. trade tariffs– after the Supreme Court ruled against President Donald Trump’s levies– is expected to spur an improvement in U.S.-bound exports, while demand in the rest of the world is also seen remaining strong.
China’s export industry had largely shrugged off headwinds from increased U.S. trade tariffs through 2025, as demand in Europe and Asia more than compensated for softer U.S. exports.
Tuesday’s data showed domestic demand also improved sharply in the first two months of 2026, with imports rising 19.8%, much more than expectations of 6.3%.
The print was in part driven by increased consumer spending during the Lunar New Year holiday, while industrial demand for commodities also picked up.
Source: Investing