NextFin News -- China's exports in January and February surged to a record high of $656.58 billion, marking a 21.8% year-on-year increase, beating expectations.
The increase in exports was a significant acceleration from the 6.6% rise in December and the 5.5% gain for the entire 2025, according to data released on Tuesday by the General Administration of Customs of China. Economists’ average forecast of the increase was 6.3% while the range was between 2.4% and 12%, based on a survey of 13 institutions by Caixin.
The surge in exports to non-U.S. markets was a key factor, as the Chinese governments sought to diversify export destinations and deepen trade ties with ASEAN and the EU.
Despite the strong export performance, China's trade surplus rose to its highest on record in the combined January-February period. The trade balance surged to $213.62 billion, compared with expectations of $179.6 billion. The trade figures come after China's consumer inflation recorded its biggest jump in more than three years, supported by spending during an extended holiday.
The strong export performance, combined with the relatively low growth target set during Beijing's annual "Two Sessions" policy meetings, suggests that additional stimulus is unlikely in the near term.
ASEAN: Largest Export Destination
The total trade value between China and ASEAN was $112.63 billion in January and February, a year-over-year increase of 29.4%, according to the General Administration of Customs of China.
The trade between China and the EU was $101 billion, representing an increase of 27.8% year over year. The trade between China and Russia stood at $18.29 billion, marking a 22.7% increase year over year. The trade between China and Japan rose merely 8.9% year over year to $26.16 billion.
By contrast, the trade between China and the U.S. fell 11% year over year to $67.24 billion. The decline started in April 2025 when U.S. President Donald Trump started a tariff war.
During the same period, China's total imports and exports with countries participating in the Belt and Road Initiative amounted to 4.02 trillion yuan, an increase of 20%.
In terms of foreign trade entities, in the first two months, private enterprises' imports and exports reached 4.51 trillion yuan, an increase of 22.8%; foreign-invested enterprises' imports and exports totaled 2.2 trillion yuan, an increase of 15.3%; and state-owned enterprises' imports and exports reached 1 trillion yuan, an increase of 7.4%.
Electromechanical Products Take the Lead
China exported 2.89 trillion yuan worth of electromechanical products in January and February, representing an unprecedented increase of 24.3%, according to the General Administration of Customs.
By sector, labor-intensive products performed well in the first two months. Textiles and garments exports went up by 20.5% and 14.85% year over year. Agricultural exports were 120.01 billion yuan, increasing by 9.7%.
On the import side, in the first two months, China imported electromechanical products valued at 1.21 trillion yuan, a growth rate of 21.3%; iron ore at 210 million tons, an increase of 10%; and crude oil at 96.934 million tons, rising by 15.8%.
(Note: 1 U.S. dollar equals 6.9 Chinese yuan.)
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