China’s H1 Trade Surges 16.9% as High-Tech Exports Jump 39%
China’s total goods trade reached 25.47 trillion yuan (approximately $3.75 trillion) in the first half of 2026, surging 16.9% year-on-year and marking the first time half-year trade has exceeded 25 trillion yuan, according to data released by the General Administration of Customs (GAC) on July 14. High-tech product exports soared 39% to 3.26 trillion yuan, underscoring the growing role of artificial intelligence and advanced manufacturing in driving the country’s trade growth amid global economic headwinds.
A Record-Breaking Performance
Exports rose 13.4% year-on-year to 14.73 trillion yuan, maintaining growth for 11 consecutive quarters, while imports expanded 22.1% to 10.74 trillion yuan — outpacing export growth by 8.7 percentage points and facilitating more balanced trade development, as Xinhua News reported. The trade surplus narrowed 4.7% as import growth accelerated.
In the second quarter, total trade hit 13.61 trillion yuan, up 18.4% year-on-year — the highest quarterly growth rate since the third quarter of 2021. June alone saw trade value rise 24.2% year-on-year, marking 17 consecutive months of growth.
“China’s foreign trade has sustained sound momentum in the first half, with strong growth and stable operation, and notable progress has been made in stabilizing scale and improving structure,” said Wang Jun, deputy head of the GAC, at a press conference of the State Council Information Office.
AI and High-Tech Drive Export Transformation
The most striking trend in the data is the accelerating shift toward high-value, technology-intensive exports. Mechanical and electrical product exports rose 20.1% to 9.36 trillion yuan, accounting for 63.5% of total exports — up 3.5 percentage points from a year earlier, according to China Daily.
Computing hardware trade — including electronic components and computer parts — jumped 56.6% to 5.13 trillion yuan. Exports of AI-powered smart bionic robots exceeded 10,000 units, reaching over 90 countries and regions worldwide. Lyu Daliang, director of GAC’s Department of Statistics and Analysis, noted that “AI-powered smart glasses, AI translation devices and robotic exoskeletons are among the intelligent products undergoing rapid iteration, with innovative new products continuing to emerge.”
Self-owned brand exports grew 25.4%, with their share of total exports rising 2.4 percentage points, reflecting China’s ongoing push up the global value chain.
Private Enterprises Take the Lead
Private enterprises continued to drive trade growth, contributing 57% of total trade value with imports and exports rising 17% to 14.53 trillion yuan, as reported by CGTN. Over 66,000 private firms engaged in foreign trade during the period, demonstrating the sector’s dynamism and adaptability.
A total of 267,000 foreign trade enterprises expanded their business to new markets in H1, with combined trade value growing 22.6% and accounting for nearly 70% of the national total, Wang Jun said.
Trade Diversification and Belt and Road Momentum
Trade with countries participating in the Belt and Road Initiative rose 14.8% to 12.97 trillion yuan, accounting for 50.9% of China’s total foreign trade. ASEAN remained China’s largest trading partner, with bilateral trade growing 18.2% year-on-year.
Trade with the United States declined 3.6% year-on-year, but this was more than offset by robust growth with other partners. Trade with Latin America rose 16.2%, Africa grew 19.6%, and the European Union increased 10.2%. Trade with Central and Eastern European countries grew 11%, extending 10 straight years of growth.
Since May 1, 2026, China has implemented zero-tariff treatment on 53 African countries with diplomatic relations. The policy has already yielded results: African fruit imports surged, with avocados up 130%, apples up 89.6%, and oranges up 27.9% in May and June.
Global Headwinds and the Road Ahead
Despite the strong performance, GAC officials acknowledged challenges ahead. The World Bank has warned of energy price increases, inflationary pressures, and monetary policy tightening globally. The IMF projects global goods and services trade growth will slow from 5% in 2025 to 3.5% in 2026.
“While the country faces external headwinds for foreign trade in the second half of the year, China’s foreign trade fundamentals remain solid, supported by strong innovation momentum, vibrant market entities and high-level opening up,” Wang Jun said. “We have the confidence and capability to sustain the sound development momentum of foreign trade.”
What to Watch
The H1 trade data marks a strong start to China’s 15th Five-Year Plan period (2026-2030). Key questions for the months ahead include whether AI-driven export growth can be sustained amid global investment cycles, how US-China trade tensions will evolve, and whether the zero-tariff policy with African nations will continue to reshape trade patterns. Customs authorities have pledged to strengthen supervision, optimize services, and advance cross-border trade facilitation to maintain momentum through the second half of the year.