A "global living room that never closes." This is how Miao Xiaoli, an entrepreneur with over two decades of experience in Yiwu, describes the ongoing transformation. The business conducted in this "living room" represents one of the three key drivers of the Chinese economy: foreign trade. However, in the spring of 2026, this rapidly advancing sector encountered a significant disruption caused by distant conflict.
At a press conference held by the State Council Information Office on April 14, Lü Daliang, spokesperson for the General Administration of Customs and Director of the Department of Statistical Analysis, reported that data showed China's imports and exports with the Middle East shifted from growth in the first two months to a decline in March. The primary cause is the ongoing conflict in the Middle East. Since the military strike by the United States and Israel against Iran on February 28, the Strait of Hormuz has been effectively blocked for over 40 days.
This strait is a critical artery for global goods and energy trade. According to a report from the UN Conference on Trade and Development, the strait facilitates 25% of global seaborne oil trade, 19% of liquefied natural gas trade, 29% of liquefied petroleum gas trade, and 13% of related chemical trade, making it one of the world's most vital maritime chokepoints. The blockage of this strategic passage has left global trade struggling for breath. Analysis from the UN body indicates that since the outbreak of hostilities involving Iran, fuel prices have surged and remained high, while oil transportation costs have increased significantly. These factors are propagating through supply chains, elevating the costs of global goods production and transportation, with worldwide merchandise trade expected to potentially decline substantially.
The World Trade Organization (WTO) has recently significantly downgraded its growth forecast for global merchandise trade. WTO Chief Economist Robert Staiger analyzed that if oil prices remain elevated throughout 2026, the growth rate of global merchandise trade could drop from 1.9% to approximately 1.4%. The growth rate for trade in services might also decrease from a baseline forecast of 4.8% to 4.1%.
Despite this challenging environment, China's foreign trade performance for the first quarter delivered a surprisingly positive report. Customs statistics show that in the first quarter of this year, China's total goods trade imports and exports reached 11.84 trillion yuan, a year-on-year increase of 15%. Wang Jun, Vice Minister of the General Administration of Customs, stated that exceeding 11 trillion yuan in quarterly import-export value is a first for the period, and the quarterly growth rate is the highest in nearly five years.
This naturally raises the question: with business in the Middle East shrinking, how did China achieve a record performance? The answer lies in two words: resilience. This resilience is built upon three key pillars.
First, market diversification. In the first quarter, China's imports and exports with Belt and Road partner countries reached 6.06 trillion yuan, growing by 14.2%. Trade with ASEAN and Latin America both grew by 15.4%, while trade with Africa surged by 23.7%. Imports and exports with the European Union and the United Kingdom increased by 14.6% and 13.1%, respectively. Notably, regarding import sources, China saw import growth from over 150 countries and regions in the first quarter. In other words, while some buyers changed, the flow of customers never ceased. A diversified market acts like a net; even if one part, like the Middle East, develops a hole, other areas hold the structure firm.
Second, impressive import performance. Customs data indicates that China's imports grew by nearly 20% in the first quarter, with the growth rate surpassing that of exports by 7.7 percentage points, setting a new historical high for the period. Robust growth in industrial production is enabling countries to better share in the "China opportunity." Imports of textile raw materials, computer components, and electronic components increased by 39.3%, 45.3%, and 37.9%, respectively, in the first quarter. Expanding domestic demand further fueled import growth. For instance, imports of high-tech products grew by 25.1%, while imports of bulk commodities and consumer goods also maintained strong growth rates.
Third, strong new export drivers. The goods in the "living room" are no longer dominated by cheap small commodities; instead, high value-added products have taken the lead, demonstrating greater resilience against external shocks. In the first quarter, combined exports of storage components and central processing units grew by 39.1%. Exports of power-related products, including power generation equipment, power transmission and transformation equipment, and energy storage equipment, also achieved double-digit growth.
"Facing a complex and severe external environment, our confidence remains firm," Wang Jun stated, emphasizing that the fundamental conditions supporting China's long-term economic growth and its positive underlying trend remain unchanged, with the strengths and potential of foreign trade continuously becoming more apparent.
Amid conflict, there are no winners. In response to external uncertainties, China's stance is resolute and鼓舞人心: it is essential both to promote peace and cease hostilities, and, more importantly, to strengthen internal capabilities. Lü Daliang stressed that China consistently advocates for resolving disputes through political and diplomatic means and has been actively engaged in promoting peace. He expressed hope that all parties would work together to de-escalate the situation swiftly and restore peace and stability to the Strait and the wider Middle East region.
Concurrently, China has rolled out significant measures to continuously expand its autonomous opening-up. Effective May 1, China will fully implement a zero-tariff policy for 53 African countries with which it has diplomatic relations. The objective is clear: China aspires not only to be the "world's factory" but also the "world's market." No matter how fierce the external storms, as long as the door to the "living room" remains open and customers keep coming, business will continue uninterrupted.
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