China’s exports grew by 21.8% during the first two months of 2026, compared with a year earlier, boosting an economy marked by stubborn deflation and weak domestic demand. Growth was 6.6% in December. (China combines January and February figures to smooth the effect of the Spring Festival.) A growing trade surplus will irk Mr Trump, notes the FT, as he prepares to meet Xi Jinping later this month.
Otherwise_Young52201 on
It should be noted that import growth was also at a very strong 19.8%. This is despite the fact that the Yuan is weaker right now than at the same point last year, so while some of the export growth is expected due to a weaker Yuan, the import outperformance is what is really unexpected.
I do wonder if this is more because SAFE’s new methodology for calculating its current account is finally catching up to the old method, and this is simply matching customs data rather than just relying on internal surveys for export/import volume.
Kaffe-Mumriken on
Hasn’t China been struggling in igniting its consumers? What challenges do they face? Poor financing? Overburdening with regulation?
3 Comments
China’s exports grew by 21.8% during the first two months of 2026, compared with a year earlier, boosting an economy marked by stubborn deflation and weak domestic demand. Growth was 6.6% in December. (China combines January and February figures to smooth the effect of the Spring Festival.) A growing trade surplus will irk Mr Trump, notes the FT, as he prepares to meet Xi Jinping later this month.
It should be noted that import growth was also at a very strong 19.8%. This is despite the fact that the Yuan is weaker right now than at the same point last year, so while some of the export growth is expected due to a weaker Yuan, the import outperformance is what is really unexpected.
I do wonder if this is more because SAFE’s new methodology for calculating its current account is finally catching up to the old method, and this is simply matching customs data rather than just relying on internal surveys for export/import volume.
Hasn’t China been struggling in igniting its consumers? What challenges do they face? Poor financing? Overburdening with regulation?