China’s Factories and Ports See Pre-Lunar New Year Export Surge as US Tariffs Ease
Nearly a year after US President Donald Trump introduced the so-called “Liberation Day” tariffs, China’s factories and ports are witnessing a sharp rebound in activity ahead of the Lunar New Year holiday season.
According to reports, export orders and industrial production have accelerated, with major ports handling significantly higher cargo volumes compared to last year. The renewed momentum comes after the United States reduced tariffs on Chinese goods to 47%, easing some of the pressure that had weighed on exporters throughout 2025.
Factory Activity Picks Up Ahead of Holiday Slowdown
China traditionally experiences a manufacturing surge in the weeks leading up to the Lunar New Year, as companies rush to complete shipments before extended holiday closures. This year, however, the seasonal spike appears stronger than usual.
Data from China Beige Book indicates that factory orders, production levels, and earnings increased notably in January 2026 compared to the same period a year earlier. Both domestic and international demand reportedly accelerated on a yearly and monthly basis.
A Guangdong-based electronics manufacturer told CNBC that operations have nearly returned to full capacity after a year marked by tariff-related uncertainty. The manufacturer noted that American customers have largely resumed regular purchasing patterns, although some clients are paying additional fees to ensure goods are produced and shipped before the holiday period.
Chinese Ports Handle 40% More Containers
Shipping activity has also seen a significant jump. Major Chinese ports handled approximately 40% more containers in the week ending February 1 compared to the same period last year. This marks the fastest year-on-year growth in over a year and exceeds the average weekly growth recorded in 2025.
In Ningbo, one of China’s key maritime hubs, terminals have reportedly been operating at or beyond capacity. Industry experts noted instances of vessel overbookings and temporary gate-in suspensions due to high cargo volumes.
Freight Rates Climb Amid Export Rush
The surge in exports has pushed freight rates higher. The Shanghai Containerized Freight Index, which tracks container shipping costs from Shanghai to major global markets, ranged between 1,400 and 1,656 in early January. This compares with a 15-year historical average of roughly 1,337 to 1,568.
Freight monitoring data also showed that shipments of large containers to the United States remained higher than comparable periods in both 2024 and 2025 through much of January and into early February.
Signs of Stabilization in US–China Trade
Trade tensions between Washington and Beijing appear to have moderated following diplomatic engagement in late 2025. After discussions between President Trump and Chinese President Xi Jinping in October, both sides agreed to a one-year truce that maintained tariffs at reduced levels.
As part of the agreement, US tariffs on Chinese goods were lowered from 57% to 47%, while Beijing committed to taking steps aimed at restricting the flow of certain chemical exports.
Throughout 2025, Chinese exporters also diversified their markets, increasing shipments to Southeast Asia and Europe while reducing direct exposure to the US market. Analysts say this strategy helped stabilize export performance during periods of heightened tariff uncertainty.
Outlook: Seasonal Boost or Sustained Recovery?
While the pre-holiday surge is partly seasonal, the strength of orders and shipping activity suggests improved confidence among manufacturers and global buyers. Many Chinese companies are now focusing on product development and expansion plans, reflecting a more stable trade environment compared to last year.
Market watchers will be closely monitoring whether the post-holiday period sustains this momentum or if activity normalizes after the seasonal rush subsides.
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