Trade Logistics

Strong Growth in China's Foreign Trade in First Five Months of 2026: Mechanical and Electrical Products Lead, African Market Emerges as New Bright Spot

     Since the beginning of 2026, China's foreign trade has delivered impressive results. According to data released by the General Administration of Customs on June 9, China's total goods trade import and export value reached 20.68 trillion yuan in the first five months of 2026, a year-on-year increase of 15.3%. Among this, exports reached 11.91 trillion yuan, up 11.8%, and imports reached 8.77 trillion yuan, up 20.5%, with both exports and imports achieving double-digit growth. In May alone, the total import and export value reached 4.45 trillion yuan, a year-on-year increase of 16.9%, with the growth rate further expanding from the previous month. Monthly imports and exports have remained above 4 trillion yuan for three consecutive months. These figures fully demonstrate the resilience and vitality of China's foreign trade.

Mechanical and Electrical Products: The Main Driver of Foreign Trade Growth

High-tech, high-value-added products have become the core driving force.

     In the first five months, China's exports of mechanical and electrical (M&E) products reached 7.58 trillion yuan, a year-on-year increase of 18.4%, raising their share of total exports to 63.6%. Looking at subcategories, the most prominent growth came from four major categories: integrated circuits, automatic data processing equipment, automobiles, and ships.

     Integrated circuits exports reached 965.05 billion yuan, a substantial year-on-year increase of 83.4%, the fastest-growing category among M&E products.

     Automatic data processing equipment and components exports reached 770.5 billion yuan, up 34.1%.

     Automobiles and chassis exports reached 511.25 billion yuan, up 45.5%, maintaining strong momentum.

     Shipsexports reached 175.75 billion yuan, up 22.5%.

     On the import side, M&E product imports in the first five months reached 3.54 trillion yuan, up 25.3%, reflecting strong domestic demand for high-end equipment and core components from the manufacturing sector.

      The China Chamber of Commerce for Import and Export of Machinery and Electronic Products noted that in May alone, M&E product exports reached 1.65 trillion yuan, a year-on-year increase of over 21%, raising their share of exports to 63.7%. High-tech, high-value-added M&E products have become the absolute main driver of export growth.

The "New Trio" of Green Energy: Sustaining Green Momentum

     The "new trio" — electric vehicles (EVs), lithium batteries, and photovoltaic (PV) products — continued to maintain strong growth momentum. In the first five months, exports of green products such as lithium batteries and wind power generation equipment increased by about 40% year-on-year.

      Against the backdrop of global energy anxiety triggered by the Middle East situation, Chinese clean energy products have seen special demand. From March to April, exports of Chinese PV panels and related products reached $7.6 billion, growing by 80% year-on-year in March and 40% in April. During the same period, lithium battery exports grew by 70% in March and 30% in April; EV exports grew by 60% in March and 30% in April.

      Looking at regional data, exports of the "new trio" from various provinces performed exceptionally well. In the first two months, exports of the "new trio" from Hunan Province totaled 3.58 billion yuan, a year-on-year increase of 99.1%, reaching a record high for the same period. Shandong Province's EV exports grew by 91.3%, with nearly 90% of exports going to Belt and Road partner countries.

      April data shows that China's exports of wind power, PV, battery equipment, and pure EVs increased by one-third compared to the same period last year, indicating that rising fossil fuel prices caused by the Middle East conflict are accelerating global demand for clean technology. Chinese companies' differentiated product strategies for different overseas markets (e.g., right-hand drive versions, EU-compliant versions) and the full-chain "vehicle + battery" export model are gradually opening up diverse markets such as Europe, Southeast Asia, and Latin America.

Trading Partner Landscape: ASEAN Remains Top, Africa Becomes New Growth Pole

     Looking at trading partners, ASEAN continued to hold its position as China's largest trading partner, with total trade value reaching 3.52 trillion yuan, a year-on-year increase of 16.6%.

     The European Union is China's second-largest trading partner, with bilateral trade totaling 2.53 trillion yuan in the first five months, up 10.3% year-on-year.

     Regarding the United States, total China-US trade in the first five months reached 1.61 trillion yuan, a year-on-year decrease of 6.6%, with its share contracting.

     Notably, the African market has become a major bright spot. In the first five months, China's imports and exports with African countries reached 1.14 trillion yuan, surpassing 1 trillion yuan for the first time in the same historical period, a year-on-year increase of 18.2%. Among this, imports from Africa reached 95.13 billion yuan in May alone, up 15%, maintaining growth for nine consecutive months. This growth trend is closely related to China's zero-tariff policy for 53 African countries with diplomatic relations, which took effect on May 1 this year, and will provide institutional support for continued warming of China-Africa trade.

     In addition, China's total imports and exports with Belt and Road partner countries reached 10.57 trillion yuan, up 13.6%; with other APEC economies, it reached 12.31 trillion yuan, up 17.4%, accounting for nearly 60% of China's total foreign trade.

Agricultural Imports Rebound Significantly

     From January to April 2026, China's total agricultural imports reached $68.13 billion, a year-on-year increase of 13.4%, the highest growth rate for the same period in the past five years. Import growth accelerated month by month, with April's year-on-year growth reaching 20.2% and month-on-month growth of 20.3%.

     By category, soybean imports reached $12.1 billion, up 14.3%. Benefiting from the high prosperity of domestic pig farming, demand for soybean meal has been strong. Data from the Ministry of Agriculture and Rural Affairs shows that China's soybean imports reached 103 million tons in the 2025/26 marketing year, with the trend toward diversified import sources continuing. Aquatic product imports reached $8.1 billion, up 27.6%. Durian imports reached $1.7 billion, a staggering year-on-year increase of 205.1%, reflecting continued strong demand for tropical fruits. Beef imports reached $6.22 billion, up 34.7%.

     Overall agricultural imports in the first five months reached 618.16 billion yuan, a year-on-year increase of 7.6%, continuing the steady rebound trend.

Private Enterprises and Processing Trade Perform Outstandingly

     By trade entity, private enterprises continued to play the leading role in foreign trade. In the first five months, imports and exports by private enterprises reached 11.81 trillion yuan, up 15.5%, with their share of total foreign trade continuing to rise. Foreign-invested enterprises saw imports and exports of 6.02 trillion yuan, up 15.7%, while state-owned enterprises reached 2.81 trillion yuan, up 14%.

     By trade mode, processing trade imports and exports reached 3.95 trillion yuan, up 22.9%; bonded logistics imports and exports reached 3.59 trillion yuan, with a sharp increase of 41.8%. General trade imports and exports reached 12.47 trillion yuan, up 8.3%, maintaining its dominant position.  

Trade Flow Analysis and Trend Outlook

Based on the data from the first five months, current foreign trade flows show the following prominent characteristics:

     First, export structure continues to upgrade toward high-tech, high-value-added sectors.M&E products account for over 63% of exports, integrated circuit export growth has reached 83.4%, the "new trio" products maintain high growth, while traditional labor-intensive product exports fell by 3.1%, fully reflecting the transformation from "Made in China" to "Intelligent Manufacturing in China."

     Second, diversification of trading partners is accelerating. Imports and exports with Africa exceeded 1 trillion yuan for the first time, trade with ASEAN maintains high growth, and trade with Belt and Road countries is steadily rising. Although the share of trade with the US has declined, the volume remains substantial, demonstrating that China's foreign trade is building a more diversified market layout.

     Third, green trade has become an important growth pole. The Middle East conflict has heightened global energy security concerns, prompting countries to accelerate the deployment of renewable energy, creating a structural window of opportunity for China's exports of PV panels, lithium batteries, and EVs.

     Lyu Daliang, Director of the Department of Statistics and Analysis of the General Administration of Customs, stated that since the beginning of this year, under the strategic guidance of head-of-state diplomacy, China has actively deepened practical cooperation with global economic and trade partners, injecting stability into the international economic and trade environment. With the full implementation of the zero-tariff policy for 53 African countries, the continued deepening of RCEP, and the series of APEC China-year economic and trade activities, it is expected that China's foreign trade will continue to maintain steady progress in the second half of the year.

Action Recommendations for Foreign Trade Enterprises

     Based on current trade flow data, foreign trade enterprises can focus on the following directions:

Integrated circuit and electronic component enterprises: Export growth has reached as high as 83%, with strong overseas demand. Companies can seize the opportunity of global semiconductor industry chain restructuring and accelerate technological upgrades and capacity expansion.

     New energy vehicle and "new trio" enterprises: Europe's energy transition and the acceleration of new energy infrastructure in Latin America and Southeast Asia continue to release demand. Companies should pay attention to emerging export markets such as Africa under the zero-tariff policy, while also preparing overseas after-sales and localized service networks.

     Enterprises trading with Africa: Seize the window period of the zero-tariff policy and the acceleration of the African Economic Community integration process, actively deploying two-way trade in agricultural product imports and industrial goods exports.

     Enterprises trading with ASEAN: RCEP dividends continue to be released, with fast growth in electronics, machinery, textiles and other sectors. Companies are advised to deepen industrial chain cooperation within the region and use rules of origin accumulation to reduce tariff costs.

     Agricultural product importers: Categories such as soybeans, aquatic products, and fruits have shown strong growth. Companies can consider diversifying procurement channels to reduce dependence on a single market.

     In foreign trade, data is more reliable than experience. Every period's customs import and export data is the best market barometer. Timely capture of changes in trade flows is essential to seize opportunities in a rapidly changing market.