According to a report by China Daily on March 11…
China’s foreign trade delivered a robust start to 2026, reinforcing expectations that external demand will remain an important driver of the country’s economic growth this year, economists and business leaders said.
According to data released by General Administration of Customs of China, China’s total goods trade reached 7.73 trillion yuan ($1.12 trillion) in the first two months of 2026, marking a year-on-year increase of 18.3 percent.
Exports rose 19.2 percent to 4.62 trillion yuan, while imports climbed 17.1 percent to 3.11 trillion yuan, reflecting improving global demand as well as the resilience of China’s manufacturing sector.
Economists said the strong start indicates that China’s industrial base and supply chain advantages continue to support its position in global trade, even as the international economic environment remains uncertain.
Researchers at Beijing-based University of International Business and Economics said China’s expanding middle-income population is expected to reshape import demand, particularly toward consumer goods and higher-value products. At the same time, rising imports of commodities and advanced technology components will support industrial upgrading and create new opportunities for exporters worldwide.
Analysts also pointed to improving global conditions. Manufacturing indicators in several major economies have remained above expansion thresholds, suggesting a gradual recovery in external demand.
Sheana Yue, senior economist at Oxford Economics, said China is likely to maintain a strong manufacturing base in the coming years, ensuring that exports continue to play a central role in economic growth.
“Manufacturing investment and external demand will remain the main growth drivers through 2026 and 2027,” Yue said, adding that consumption may become a larger contributor later in the decade as household income and wealth effects strengthen.
Global investment banks share a similar outlook. Analysts at Morgan Stanley expect a gradual improvement in global demand if the United States avoids a recession and trade tensions ease, which could support China’s non-technology exports in particular.
Beyond trade flows, multinational companies increasingly see China as more than just a consumer market. Many view the country as a critical production hub, innovation center and export platform for global operations.
Foreign-invested enterprises in China recorded 2.2 trillion yuan in combined imports and exports during the first two months of the year, a 15.3 percent increase year-on-year, according to customs statistics.
Business sentiment also remains relatively positive. A recent survey by American Chamber of Commerce in South China found that 45 percent of surveyed companies ranked China as their top global investment destination, up from the previous year.
The survey also showed that 75 percent of companies plan to reinvest in China in 2026, with member companies collectively allocating $13.79 billion from their China profits for reinvestment over the next three to five years.
According to the chamber, many companies are expanding their presence in China to increase market share, strengthen local innovation capabilities and integrate more deeply into the country’s manufacturing ecosystem.
Taken together, analysts say China’s strong trade performance early in the year underscores the country’s continued role as a pillar of global supply chains and a stabilizing force in international trade, even as geopolitical tensions and economic uncertainties persist.