China’s Jan-May Trade Hits $2.87 Trillion as Manufacturing Goes High-Tech

China’s foreign trade surged 15.3% year-on-year in the first five months of 2026, reaching 20.68 trillion yuan (approximately $2.87 trillion), according to data released June 9 by the General Administration of Customs (GACC). The figures reveal a manufacturing sector in the midst of a profound transformation — one increasingly driven by high-tech innovation, green products, and a rapidly diversifying network of trade partners.

Trade Momentum Exceeds Expectations

May alone delivered a particularly strong performance, with monthly trade reaching 4.45 trillion yuan — a 16.9% year-on-year increase that surpassed market expectations. Monthly imports and exports have now exceeded 4 trillion yuan for three consecutive months, signaling sustained momentum.

“Foreign trade has continued its stable growth since the beginning of this year,” said Lyu Daliang, Director of GACC’s Statistics and Analysis Department. He credited head-of-state diplomacy with deepening cooperation with global trade partners and “injecting stability into international economic and trade operations.”

Exports for the January-May period rose 11.8% to 11.91 trillion yuan, while imports grew even faster at 20.5% to 8.77 trillion yuan — a sign of robust domestic demand recovery. In May alone, imports jumped 21.5% year-on-year, outpacing export growth of 13.8%.

The Shift from ‘Made in China’ to ‘Intelligently Made in China’

Perhaps the most telling story lies in what China is now exporting — and how that has changed.

High-tech and electromechanical products reached 7.58 trillion yuan in exports during the first five months, up 18.4% and now accounting for over 60% of total exports. Green products such as lithium batteries and wind turbines saw export growth of approximately 40%, according to Xinhua.

“High value-added, high-tech products are becoming the shining label of ‘Made in China’ going global,” said Gao Shiwang, spokesperson for the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

This structural shift is underpinned by significant investment in innovation. China’s R&D spending exceeded 3.92 trillion yuan in 2025, ranking second globally, with R&D intensity reaching 2.80% — surpassing the OECD average. The Ministry of Industry and Information Technology reports that China’s smart manufacturing equipment, industrial software, and system solutions industries have surpassed 4.5 trillion yuan in scale.

Zhu Caihua, a professor at the University of International Business and Economics, noted that the competition for “intelligence” and “innovation” in China’s foreign trade products is “precisely the result of the innovation-driven development strategy taking root.”

Trade Diversification: More Friends, Fewer Dependencies

China’s trade landscape is undergoing a strategic rebalancing. While trade with the United States declined 6.6% year-on-year to 1.61 trillion yuan, trade with other major partners grew strongly:

• ASEAN: 3.52 trillion yuan, up 16.6%
• European Union: 2.53 trillion yuan, up 10.3%
• Belt & Road countries: 10.57 trillion yuan, up 13.6%
• Africa: 1.14 trillion yuan, up 18.2% — a historic first above 1 trillion yuan
• APEC economies: 12.31 trillion yuan, up 17.4%, accounting for nearly 60% of total trade

“We have more friends now, the foreign trade ‘circle of friends’ is growing larger, and our confidence in dealing with global trade fluctuations is stronger,” said Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation under MOFCOM.

Several policy factors are driving this diversification. Starting in May 2026, China fully implemented a zero-tariff policy for all African countries with diplomatic relations. The year 2026 has also been designated as APEC “China Year,” further boosting regional cooperation.

Private Enterprise: The Engine of Growth

Private enterprises continue to dominate China’s foreign trade, accounting for 11.81 trillion yuan in the first five months — a 15.5% increase. They now represent the country’s largest foreign trade entity, reflecting the sector’s vitality and adaptability.

Zhang Linshan, a researcher at the Academy of Macroeconomic Research under the NDRC, pointed to Yiwu’s small commodities as a microcosm of this transformation: “From ‘competing on price’ to ‘competing on creativity and patents’ means Yiwu’s small commodities have completed a leap from factor-driven to innovation-driven growth.”

What to Watch Next

The data paints a picture of a manufacturing sector that is not just growing, but upgrading. However, challenges remain. Ongoing US-China trade friction, geopolitical uncertainties, and increasing competition from other manufacturing economies in Southeast Asia and South Asia could test China’s export resilience.

Gao Shiwang summarized the path forward: “The key to consolidating this development momentum of Made in China lies in strengthening and supplementing supply chains, stimulating the vitality of private enterprises, and deepening international cooperation.”

With monthly trade consistently above 4 trillion yuan and structural upgrades accelerating, China’s foreign trade appears well-positioned to navigate the complexities of the global economic landscape — provided it can sustain the innovation-driven momentum that has become its new competitive edge.