China's foreign trade volume reached 11.84 trillion yuan in the first quarter, growing by 15% year-on-year, marking the highest growth rate in nearly five years. Exports totaled 6.85 trillion yuan, an increase of 11.9%, while imports rose to 4.99 trillion yuan, up 19.6%. Private enterprises accounted for 57.3% of the total trade volume, a record high. Meanwhile, the export growth rate in central and western regions reached 20.2%, outpacing the national average. The General Administration of Customs described the performance as "a strong start with solid momentum."

**Q1 Foreign Trade: Strongest Opening in Nearly Five Years** Data released by the General Administration of Customs on April 14 showed that the total value of imports and exports in the first quarter reached 11.84 trillion yuan, a 15% year-on-year increase, the highest growth rate in nearly five years. This is the first time the figure has exceeded 11 trillion yuan during the same period in history. It also marks the first time since the fourth quarter of 2022 that import and export growth has returned to double digits, maintaining a level above 10 trillion yuan for 12 consecutive quarters.

Exports grew by 11.9% to 6.85 trillion yuan, while imports surged by 19.6% to 4.99 trillion yuan, accelerating by 2.5 percentage points compared to the first two months of the year. Private enterprises contributed 57.3% of the total trade volume, setting a new record. Exports from central and western regions grew by 20.2%, leading the nation.

**Highlights of Q1 Export Products** Notable growth was observed in specific export categories: 3D printers increased by 119%, electric vehicles by 77.5%, and lithium batteries by 50.4%.

**Three Factors Driving Strong Q1 Trade Performance** **Factor 1: Stable Economic Foundation** Efforts by various regions and departments to stabilize trade scale and optimize structure, combined with recovering external demand and a robust domestic industrial support system, contributed to the positive performance. - Import and export growth returned to double digits for the first time since Q4 2022, maintaining a level above 10 trillion yuan for 12 consecutive quarters. - Export growth reflects a combination of recovering external demand, a complete industrial chain, and enhanced innovation by enterprises. - Infrastructure and new urbanization projects, along with extended holiday effects, drove imports of mechanical and electrical products and consumer goods up by 21.7% and 5.4%, respectively.

**Factor 2: Strong Enterprise Vitality** Private and foreign-invested enterprises played a dual driving role, with both the number of market entities and trade scale expanding. - Over 540,000 private enterprises engaged in foreign trade, generating 6.78 trillion yuan in import-export value, a 16.2% year-on-year increase, accounting for 57.3% of the total. - Foreign-invested enterprises saw trade growth for eight consecutive quarters, with over 6,200 newly registered foreign-invested entities in Q1. - The total number of enterprises with import-export records reached 618,000, an increase compared to the same period last year.

**Factor 3: Robust Endogenous Momentum** Diversified market strategies beyond the U.S. yielded significant results, with central and western regions leading export growth. - While trade with the U.S. declined, trade with ASEAN and Latin America grew by 15.4%, with Africa by 23.7%, and with the EU by 14.6%. - Exports from central and western regions grew by 20.2%, significantly higher than the 14.3% growth in eastern regions. - Recent attention on "Zhangxue Motorcycle" exemplifies the growing strength of China's motorcycle manufacturing sector, with its championship-winning model produced in the central-western region. According to customs statistics, 4 out of every 10 internal combustion engine motorcycles exported by China originate from these regions. - Major trade provinces—Guangdong, Jiangsu, Zhejiang, Shanghai, and Shandong—collectively contributed over 60% of the total import-export growth.

**Emerging Opportunities for Enterprises: Three Pathways** **1. Rapid Growth in Emerging Markets** - Data: Trade with ASEAN and Latin America grew by 15.4%, with Africa by 23.7%. - Insight: Exporters are accelerating diversification into non-U.S. markets, with opportunities in Southeast Asian manufacturing bases and energy infrastructure demand in the Middle East and Africa.

**2. Policy-Driven Import Growth** - Data: Imports of mechanical and electrical products rose by 21.7%, supported by infrastructure and new urbanization initiatives. - Insight: Enterprises with equipment upgrade needs should leverage policy incentives to reduce costs for importing high-end machinery and raw materials.

**3. Continued Vitality of Private Enterprises** - Data: Private enterprises accounted for 57.3% of trade, a record high. - Insight: Small and medium-sized private enterprises can integrate into larger export supply chains, focusing on high-growth sectors like 3D printing and lithium batteries.

**4. Accelerated Development in Central and Western Regions** - Data: Exports from these regions grew by 20.2%, leading the nation. - Insight: The ongoing shift of manufacturing capacity to central and western regions offers advantages in logistics costs and policy support.

**5. Sustained Foreign Investment in China** - Data: Foreign-invested enterprises saw trade growth for eight consecutive quarters, with over 6,200 newly registered entities. - Insight: Increased foreign investment in China and outbound expansion by domestic firms highlight opportunities for supply chain service providers and cross-border intermediaries.

**Outlook and Challenges** While the strong Q1 performance lays a solid foundation for annual trade growth, external uncertainties remain. The World Trade Organization predicts global merchandise trade growth will slow to 1.9% by 2026, a decrease of 2.7 percentage points. The OECD also notes that ongoing conflicts in the Middle East pose risks to global economic resilience.

Enterprises are advised to capitalize on emerging market opportunities, utilize policy support for imports, and monitor fluctuations in exchange rates and supply chain costs amid improving trade data.

**Key Takeaways** - China's foreign trade reached 11.84 trillion yuan in Q1 2026, growing by 15%, the highest rate in nearly five years. - Three factors underpinned growth: a stable economic foundation, strong enterprise vitality, and robust endogenous momentum. - Key drivers included export product upgrades, the rise of private enterprises, and diversified market strategies. - Opportunities for enterprises lie in entering emerging markets, importing advanced equipment, and leveraging policy benefits.