A cargo ship is busy at Qingdao Port in Shandong Province, China, as the country reports a remarkable surge in its trade surplus for the combined January-February period of 2026, the highest on record. This increase underscores the resilience of China’s economy in the face of ongoing trade tensions with the United States. By combining the two months’ data, China aims to mitigate distortions caused by the Lunar New Year holiday.
China’s trade balance soared to an impressive $213.62 billion, surpassing economists’ expectations of $179.6 billion. Exports experienced a significant year-on-year jump of 21.8%, vastly exceeding the anticipated growth of 7.1%, according to a Reuters poll. Meanwhile, imports also saw a robust increase of 19.8% compared to the same period last year, outpacing forecasts of 6.3% growth, as revealed by customs data released Wednesday.
Interestingly, while trade with the U.S. fell 16.9% to 609.71 billion yuan (approximately $88.22 billion), trade relations with the European Union flourished, climbing 19.9% to reach 998.94 billion yuan. Trade with the Association of Southeast Asian Nations (ASEAN) also grew by 20.3%, hitting 1.24 trillion yuan. This shift illustrates a strategic pivot in China’s trade partnerships amid fluctuating relations with the U.S.
Further bolstering the economic landscape, China’s consumer inflation witnessed its most significant increase in over three years, supported by heightened spending during an extended holiday period. The Consumer Price Index (CPI) rose 1.3% in February compared to the same month last year, outperforming economists’ forecasts of 0.8%. This follows a modest rise of 0.2% in January, marking the sharpest rebound since January 2023.
These trade figures align with the recent conclusions of China’s critical “Two Sessions” policy meeting. Premier Li Qiang addressed the ramifications of U.S. tariffs while outlining economic growth targets, emphasizing a commitment to navigating the complex international trade landscape.
Since President Donald Trump reoccupied the Oval Office in January 2025, U.S.-China relations have seen a tumultuous trade war, characterized by varying tariff rates imposed on goods from both nations. A recent thaw was noted after a meeting between Trump and Chinese President Xi Jinping on the sidelines of the APEC summit in Busan, South Korea, last October. Currently, U.S. tariffs on Chinese goods stand at a global level of 10%, following the Supreme Court’s dismissal of tariffs initially enacted under the International Emergency Economic Powers Act. However, earlier tariffs tied to Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962 remain in effect for specific products, with rates reaching up to 100%.
China Briefing, a business intelligence firm, reported that due to various existing duties, the effective tariff rate on numerous Chinese goods entering the U.S. hovers near 30%, the highest rate of any exporting nation. As the global trade landscape continues to shift, stakeholders will be keenly watching how these dynamics evolve.
Stay tuned for further updates on this developing story and choose CNBC as your go-to source for authoritative business news.
Original Source: https://www.cnbc.com/2026/03/10/china-trade-balance-surplus-record-exports-tariffs-imports.html
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Publish Date: 2026-03-10 09:27:00
