HUZHOU, CHINA – JANUARY 27: An worker works on the beverage manufacturing line to fulfill the Spring Pageant market demand at Leyuan Well being Know-how (Huzhou) Co., Ltd. on January 27, 2026 in Huzhou, Zhejiang Province of China.
Wang Shucheng | Visible China Group | Getty Pictures
A 12 months after U.S. President Donald Trump’s tariffs spooked exporters and clients, Chinese language factories and ports are buzzing with exercise forward of the Lunar New Yr — even pushing freight charges greater.
Chinese language manufacturing facility exercise sometimes surges firstly of the 12 months with producers racing to fulfil orders and ship out items earlier than the nation enters an prolonged vacation for the Chinese language New Yr. This 12 months’s pre-holiday rush seems as robust as ever regardless of Trump tariffs.
Renaud Anjoran, founder and CEO of Agilian Know-how, a Guangdong-based electronics producer, stated his manufacturing facility was working at practically full capability after a 12 months of stop-start tariff threats: “We’re very busy.”
“It is again to the state of affairs the place it is like tariffs do not exist. American clients are usually not pondering of [buying from] different locations,” Anjoran stated, including that some purchasers needed to pay further prices to have items made and shipped out earlier than the vacation.
His plant within the metropolis of Dongguan ships greater than half its merchandise to the U.S., sustaining exports at ranges seen earlier than Trump’s imposition of tariffs final 12 months.
“Factories noticed orders, manufacturing and earnings leap forward of the Chinese language New Yr holidays,” in response to China Beige Ebook that tracks financial knowledge from the world’s second largest economic system.
The analysis agency estimates that in January, industrial output jumped in comparison with a 12 months in the past, with each home and export orders “accelerating sharply on-year and on-month.” The official studying on output for January and February might be out in March.
Main ports in China dealt with 40% extra containers through the week ended Feb. 1 from a 12 months earlier, in response to a staff of transport and logistics analysts at HSBC Financial institution. That marks the quickest year-on-year progress in additional than 12 months and nicely above the common weekly progress of about 10% in 2025.
Take the ports in Ningbo, one in all China’s most crucial maritime hubs: Terminals operated “past capability, with particular person vessels overbooked by greater than 20%, and container gate-in has been suspended,” stated Jay Guo, dean at Ningbo China Institute for Provide Chain Innovation.
Unmanned vehicles transport containers at Dapukou Container Terminal in Zhoushan Port, Ningbo, Zhejiang, China, on December 9, 2025.
Nurphoto | Nurphoto | Getty Pictures
Rising transportation prices
Extreme site visitors congestion has pushed trucking charges up by 80%, Guo stated, noting that many factories and freight forwarders will halt operations from Friday and resume subsequent Thursday.
“CNY-focused advisories for shippers in Europe, North America, and Asia report a transparent pre-holiday pull-forward of bookings from China,” stated Wolfgang Lehmacher, a worldwide provide chain and logistics professional.
That stated, the spike was additionally partly due to the low-base results from the timing of the Lunar New Yr, which is in mid-February this 12 months, versus late January in 2025.
The surge in exercise, pushed by pre-holiday front-loading, has pushed up freight costs. The Shanghai Containerized Freight Index, a key benchmark for container freight charges from Shanghai to main international locations, was floating within the vary of 1,400 to 1,656, in early January in contrast with the common degree over the previous 15 years of 1,337 to 1,568, in response to HSBC’s freight monitor report launched Monday.
Charges hit a peak three weeks sooner than the historic sample suggests, signaling the pre-holiday front-loading being pulled ahead this 12 months, HSBC analysts stated in its observe.
Giant container shipments to the U.S. have been working above ranges throughout the identical interval in 2024 and 2025 for many a part of January and into February, the HSBC freight report confirmed.
Air freight charges for lanes to the U.S. and Europe have been greater than a 12 months earlier. The Baltic Alternate’s Shanghai Pudong outbound index was up 5.3% through the week ended Feb. 2 from the earlier week.
Corporations are additionally transferring forward with growing new merchandise as tariff tensions have ebbed. Following a high-level assembly in October, China secured a one-year commerce truce with Washington that saved tariffs on its items to the U.S. at a decrease degree.
For many a part of 2025, China had decreased its direct shipments to America whereas ramping up exports to various markets together with Southeast Asia and European international locations.
De-risking, not decoupling
The thrill in Chinese language factories comes regardless of firms trying to diversify their provide chains. Many multinational corporations are accelerating the “China-plus-one” sourcing methods in Southeast Asia and near-shoring in markets corresponding to Mexico and elements of Europe, however they proceed to take care of vital manufacturing or sourcing in China, stated Lehmacher.
Not surprisingly, manufacturing facility flooring in China have been bustling with clients visiting from around the globe as they place orders for the following manufacturing cycle, Cameron Johnson, a Shanghai-based senior associate at enterprise consultancy Tidalwave Options, instructed CNBC after visiting a number of factories throughout southern China final month.
Automotive, shopper and sporting items producers in southern China, have been “pretty busy,” Johnson stated, as they work by backlogs and area inquiries from overseas patrons, together with some from the U.S.
They waited so long as they will for the uncertainty to cease however now they’ve to determine transfer ahead.
Cameron Johnson
Senior associate, Tidalwave Options
The visits follows a turbulent 12 months owed to Trump’s sweeping tariffs that led to a wave of panic shopping for and sudden freezes as firms struggled with commerce uncertainty, enjoying a stop-and-go recreation with orders.
Enterprise homeowners “waited so long as they will for the uncertainty to cease however now they’ve to determine transfer ahead,” Johnson stated.
Pursuits from American clients about growing new merchandise has recovered considerably since then, stated Anjoran. “Lots of people had new merchandise in thoughts however froze the initiatives due to the uncertainty,” he stated. “Now it appears issues are comparatively secure.”
— CNBC’s Evelyn Cheng contributed to the report.
