As per the Chinese customs data, exports from the Asian giant surged 25% year-on-year in August in US dollar terms, matching forecasts and accelerating from the 23.9% growth seen in July.

However, the Xi Jinping administration still needs to address the dichotomy between resilient exports and weak domestic activity, as policymakers struggle to revive consumption and investment as they pursue a 4.5%-5% GDP growth target for 2026.

Imports, on the other hand, jumped 28.2%, compared with a 27.5% year-on-year increase in July and a forecast of a 30% rise.

In the first eight months of 2026, exports of high-tech products have gone up 42.9% in US dollar value terms. Semiconductor export ⁠values more than doubled even as volumes edged up just 4.1%, while car exports rose more than 50% in both value and volume.

As per Zhaopeng Xing, ANZ’s senior China strategist, strong demand for AI products as well as electric vehicles, solar cells, and lithium-ion batteries has offset the impact from weather events. Companies, however, are rushing to send goods to the United States due to tariff uncertainties from the Donald Trump administration.

Despite the sluggish domestic demand, China’s push to dominate key technologies has driven investor appetite for tech stocks, while surging AI-related demand has lifted a new generation of manufacturers.

Chipmaker CXMT has emerged as the biggest success story, with the business swinging to a first-half profit in its maiden earnings report since listing, as soaring semiconductor prices and strong demand for AI-driven computing lifted sales.

However, industries in the non-tech sectors have been grappling with producer price inflation and soft demand. While exports have emerged as the favorite option for Beijing to offset industrial overcapacity, both the United States and the European Union (EU) are now asking the Jinping administration to lower its trade surpluses.

China’s trade surplus rose to USD 119.09 billion in August, from July’s tally of USD 112.5 billion. The surplus in the first eight ‌months of this year has reached USD 805.51 ⁠billion, putting the annual number on track to top USD 1 trillion for the second year.

Trade surplus with the United States rose to USD 29.18 billion from USD 28 billion in July, with China’s exports to the world’s largest economy jumping 34.4% year-on-year, outstripping the 17.8% growth in imports.

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The index, compiled by S&P Global, rose to 51.5 in August from 50.9 in July, a crucial mark that separates growth from contraction.

Output rose at the fastest pace in three months, driven by stronger demand and capacity expansion, while the new orders grew at a quicker rate on the back of the sharpest rise in new export business in the first half of 2026.

As per the PMI, the employment rate remained unchanged after increases in June and July. However, stronger demand pushed backlogs of work to their fastest accumulation since March.

Finished goods inventories, on the other hand, grew ‌at ⁠the sharpest rate since September 2025, and firms reportedly increased purchasing activity after scaling it back in July.

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According to the latest China Beige Book, an independent survey of 1,321 businesses conducted between June 1 and June 22, manufacturing activity strengthened markedly during the month while consumer spending also recovered. The survey found luxury goods sales rose sharply, although tourism-related spending remained weak, highlighting uneven confidence among Chinese consumers.

“The second quarter is ending on a more positive note than it began, but this performance will need to repeat itself in July and August for there to be legitimate cause for celebration,” the report said.

The findings indicate that the world’s second-largest economy has regained some traction after losing momentum in April and May of 2026. Earlier official data showed retail sales weakening while manufacturing investment slowed, particularly in the metals, chemicals, and automotive sectors.

The recovery was driven largely by the export sector. Factory activity accelerated during June, with the survey reporting a strong increase in orders from the United States as exporters rushed shipments ahead of the possibility of higher American tariffs later this year.

China’s exports to the United States have rebounded in recent months after a prolonged downturn in 2025, while freight rates on Asia-US shipping routes have climbed to their highest levels in nearly two years as importers bring forward orders before potential tariff increases.

The ratio reached nearly 90% of levels seen in 2024, according to official data. In contrast, May 2025 figures showed China’s exports to the world’s largest economy had dropped to 70% of their 2024 levels.

Republican Donald Trump’s recent meeting with his Chinese counterpart Xi Jinping, as per analysts, signaled possibilities of lower tariffs as of now, while Washington has yet to impose additional duties that could emerge from its Section 301 probes targeting countries identified for overcapacity and forced labor practices. The 10% duty on goods from most major trading partners that the Trump administration imposed under Section 122 is set to expire on July 24.

However, the China Beige Book found that export growth to other Asian economies slowed during June, while demand from Europe remained broadly unchanged, suggesting the recent improvement is concentrated in the US market.

Tianchen Xu, senior economist at the Economist Intelligence Unit, said June’s recovery was “first and foremost led by the external sector,” reflecting businesses’ efforts to front-load exports before trade policy becomes more restrictive.

China is scheduled to release retail sales and industrial data for June, as well as Q2 GDP, on July 15. It is expected to report June 2026 trade data on July 14.

Investors will now focus on a series of key economic indicators due in mid-July, including trade figures, industrial production, retail sales, and second-quarter GDP data. Economists also expect China’s official manufacturing purchasing managers’ index to return to expansion territory, signaling that factory activity may be stabilizing.

Goldman Sachs has raised its Q3 growth forecast for the world’s second-largest economy to 5% from 4.5%, citing lower oil prices and faster government spending, after a tepid Q2 for which it predicted a growth ratio of 3.5%. Nevertheless, analysts warn that China will need a sustained revival in domestic consumption, rather than relying primarily on exports, if the economic recovery is to prove durable.

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As per the latest report issued by the Apparel Export Council of Egypt (AEC), the sector’s exports reached approximately USD 1.15 billion between January and April 2026, compared with USD 1.002 billion during the same period of 2025, sustaining strong growth momentum amid rising demand from key international markets and the North African country’s ongoing efforts to diversify its export destinations.

The month of April delivered the strongest 30-day performance so far this year, with exports surging by 33% year-on-year to USD 287 million, up from USD 216 million in April 2025. The United States remained the largest single destination for Egyptian garments, with shipments rising by 13% to USD 429 million during the first four months of the year, compared with USD 379 million in the corresponding period of 2025.

European markets, on the other hand, further strengthened their position as the largest regional bloc importing Egyptian garments, accounting for 44.6% of total sector exports. Exports to the continent climbed 29% to USD 512 million, compared with USD 398 million a year earlier.

As per the AEC, among the European countries, Turkey (USD 135 million), Spain (USD 102 million), Germany (USD 67 million), the Netherlands (USD 64 million), the United Kingdom (USD 42 million), and Italy (USD 33 million) remained the key export destinations for the North African country’s garment players. In fact, exports to Italy showed a massive 95% year-on-year jump.

Fadel Marzouk, Chairperson of the Apparel Export Council of Egypt, said the council remains committed to achieving annual export growth exceeding 22%, despite challenges arising from geopolitical tensions and their impact on the global economy.

“The strong export performance during the first four months of the year reflects the growing competitiveness of Egyptian products in international markets. This comes amid major shifts in global supply chains and an increasing tendency among international brands to diversify sourcing destinations and rely more heavily on flexible and strategically located production hubs,” Marzouk told the Daily News Egypt.

As per the official, the US market has remained the primary engine of Egypt’s export growth, alongside strong expansion across European markets, particularly Spain, Germany, and Italy. Egyptian manufacturers, in Marzouk’s opinion, have succeeded in improving product quality and delivery reliability, strengthening the confidence of international buyers in Egypt’s garment industry.

The AEC is right now implementing a strategy aimed at opening new markets and increasing Egypt’s market share in key export destinations like Europe and North America, while also pursuing “promising opportunities” across African markets.

“The sector has significant potential to achieve even higher growth rates in the coming years, particularly with ongoing factory expansions and new investments in textiles, spinning, and ready-made garments,” he said.

For Marzouk, sustaining the garment industries’ current growth trajectory will require continued export support programs, apart from measures like adequate financing for manufacturers, deeper industrial integration, and greater reliance on locally produced raw materials and production inputs to increase value-added manufacturing and enhance global competitiveness.

The AEC Chair sees garment exports rising by more than USD 1 billion in 2026, bringing total sector exports to around USD 4.4 billion, which would mark the highest export level in the history of the North African country’s ready-made garments industry. The export council, in cooperation with the government entities, is actively addressing challenges faced by the industry when it comes to sustaining industrial development and export growth.

According to Marzouk, the industry will see an unprecedented export expansion over the next three years, supported by new production capacities resulting from foreign direct investment (FDI) inflows and expansion projects undertaken by Egyptian manufacturers.

The sector is making efforts to maximize existing production capacity by modernizing manufacturing processes, utilizing higher-quality materials, integrating environmental considerations into production, and last but not least, adopting circular economy practices to ensure sustainable long-term growth.

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The non-oil sector’s contribution to the Kingdom’s total exports rose to 44%, up from the 2024 growth rate of 39%, the highest level on record. According to the latest global data, Saudi Arabia ranked highest among G20 countries in terms of growth rate.

Over recent years, the Gulf majors’ non-oil exports have shown steady growth. The figure stood at SR325 billion in 2021 and reached SR468 billion in 2022. In 2023, the ratio was SR477 billion, followed by SR543 billion and SR624 billion in 2024 and 2025, respectively.

“Non-oil goods exports reached SR225 billion in 2025, compared to SR217 billion in 2024, representing annual growth of 4%. This was primarily supported by non-petrochemical exports, which hit a record SR78 billion, up from SR70 billion in 2024, marking a 12% increase. Their share of total non-oil goods exports rose from 32% in 2024 to 35% in 2025,” reported Saudi Gazette.

“The value of non-petrochemical exports grew notably between 2021 and 2025, rising from SR58 billion to SR78 billion, while their share of total non-oil goods rose from 25% to 35% over the same period. Sector-wise, food and agricultural exports increased from SR15 billion in 2021 to SR24 billion in 2025. Exports of machinery, mechanical equipment, electrical devices, and their parts rose from SR4.3 billion to SR7.5 billion during the same period. Fertiliser exports also increased from 6.9 million tons to 10.8 million tons,” it added.

Maintaining their positive performance, services exports reached SR260 billion in 2025, up from SR235 billion in 2024, reflecting annual growth of 11%, apart from marking the highest annual value on record.

Among the sub-sectors, travel and transport accounted for 77% of total services exports in 2025.

The re-export sector recorded accelerated growth, as compared to SR91 billion in 2024, it reached SR139 billion in 2025, registering an annual increase of 53%, surpassing the SR100 billion mark for the first time and showcased a steady upward trajectory since 2021. The growth was driven by increased re-exports of machinery, equipment (including transport).

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“The war has already triggered a trade shock, which could potentially and quickly turn into a cost-of-living crisis across Africa due to higher fuel and food prices, rising shipping and insurance costs, exchange rate pressure and tighter fiscal conditions. The extent of this impact would vary across the continent based on levels of import dependency, exposure to the Middle East and global market conditions,” the report noted, while predicting that the continent’s GDP may decline in 2026 by 0.2 percentage points if the conflict’s duration exceeds six months.

According to the study, food prices, in particular, are mainly felt by vulnerable African households, given that most countries are still growing at rates below pre-COVID levels.

“Thus, the longer the conflict lasts and the more severe the disruption to shipping routes and energy and fertiliser supplies, the greater the risk of a significant growth slowdown across the continent,” the report noted.

The Middle East reportedly accounts for nearly 16% of Africa’s imports and 10.9% of its exports. The Strait of Hormuz, the key waterway effectively shut by Iran (to gain geopolitical leverage in the conflict), usually handles a fifth of global oil exports and nearly 90% of Arabian Gulf oil exports.

“Continued escalation of the conflict worsens global instability, with serious implications for energy markets, food security and economic resilience, particularly in Africa, where economic pressures remain acute,” said Mahmoud Ali Youssouf, chairman of the African Union Commission.

“Food security is crucial to Africa, with an estimated population of more than 1.57 billion, as communities across the continent rely on agriculture for their livelihood. A lack of food security can lead to hunger, malnutrition and social instability,” says African Food Security, an agricultural development firm.

The main challenges in the continent’s food sector have been climate change, poor infrastructure, limited access to modern farming technology, political instability, land degradation and rapid population growth.

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Free zones have emerged as a central pillar of Egypt’s investment ecosystem, offering a flexible and business-friendly environment that supports seamless industrial and commercial activities. Through a range of tax incentives and streamlined procedures, these facilities play a leading role in attracting both local and foreign investments, helping to enhance the national economy’s competitiveness and reinforce Egypt’s position as a regional hub for industry, logistics and international trade.

According to the latest government data, Egypt currently has 231 public and private free zones that are either operational or under development. In fact, international bodies like the Organisation for Economic Co-operation and Development (OECD) have also highlighted the importance of these zones.

As per OECD, these free zones have emerged as a key driver of foreign direct investment (FDI) inflows by offering competitive incentives and state-of-the-art infrastructure.

On the other hand, the United Nations Conference on Trade and Development (UNCTAD) reported in January 2026 that Egypt ranked first in Africa for FDI inflows for the fourth consecutive year, supported by investment facilitation measures like electronic company registration services provided by the General Authority for Investment and Free Zones (GAFI).

Free zone projects enjoy benefits like robust legal protections, including safeguards against expropriation or administrative seizure except through judicial procedures, along with extensive exemptions from customs duties and taxes on capital goods, production inputs, exports and imports, as well as value-added tax (VAT) exemptions on domestic inputs and transit goods.

Fitch Ratings also highlighted the advantages, such as tax and customs exemptions, unrestricted import and export activity, and simplified administrative procedures, that are making these strategically located facilities lucrative destinations for investors.

In 2025, 152 new projects emerged, bringing the total number to 1,243, up from 2014’s tally of 1,091. Invested capital, on the other hand, rose by 30.3% to USD 14.2 billion, including USD 2.8 billion in FDIs, compared with USD 10.9 billion in 2014.

“Total investment costs increased by 66.5% to USD 38.3 billion, while exports more than doubled to USD 9.3 billion, accounting for nearly 20% of Egypt’s total exports. Free zone projects now employ more than 248,000 workers nationwide,” Daily News Egypt reported.

Discussing ongoing major projects within these zones, Leoni Egypt produces around 45,000 automotive cables daily across three zones, in addition to operating 15 factories and employing close to 6,000 engineers, technicians and workers. Gid Textile, on the other hand, runs five factories with investments exceeding USD 250 million and 300 production lines. Yazaki Egypt, a private free zone project, has invested around 30 million euro.

Egypt’s roadmap for the 2026/27 financial year, will further implement targeted tax and customs facilitations (including expanding the tax base by increasing tax compliance without imposing additional or significant burdens), which is estimated to further help the free zones. Apart from targeting a growth rate of 5.4%, the country will allocate EGP 90 billion for various economic activity support programmes.

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In fact, according to Saad al-Kaabi, Qatar’s energy minister, if the ongoing conflict forces Gulf energy producers to ⁠shut down exports within weeks, it could drive oil to USD 150 a barrel. In response to the US-Israel joint strikes on its territory, which were launched on February 28, Tehran has stopped the traffic of tankers moving through the Strait of Hormuz, which handles roughly one-fifth of global daily oil supply. The conflict has also resulted in the disruption of output, as refineries and liquefied natural gas (LNG) plants are facing shutdowns.

“Every day the Strait stays closed, prices will go higher. The belief in the market was that Donald Trump might pull back at some point because he doesn’t want to have high oil prices, but the longer that takes, the clearer it is how much is at risk,” said Giovanni Staunovo, commodity analyst at UBS, while interacting with Reuters.

As per a White House official, the Donald Trump administration will likely announce measures to combat rising energy prices from the conflict.

In fact, the Treasury granted waivers on March 5 for companies to buy sanctioned Russian oil stored on tankers to ease supply constraints that have resulted in Asia-based refineries cutting fuel processing. As per the ship-tracking firm Kpler, about ⁠30 million barrels of Russian oil are available and loaded on vessels in the Indian Ocean, Arabian Sea region and Singapore Strait, including volumes in floating storage.

Meanwhile, spot Middle East crude premiums have spiked to multi-year highs in the first week of March, a trend that also suggests higher costs for regional refiners, with the latter struggling to find immediate alternatives and facing potential output cuts, resulting in the global hike for crude prices.

Along with Brent crude futures and West Texas Intermediate, benchmark Dubai’s cash premium jumped to USD 19.63 per barrel, the reported highest from 2018. Premiums for Oman and Murban crude also soared, hitting USD 19.15 and USD 17.87 per barrel, respectively.

“Dubai spreads have surged as crude exports remain stranded within the Middle East Gulf, making price discovery nearly impossible. We expect Strait of Hormuz disruptions to continue through at least mid-March. There are concerns that Dubai price assessment will be nearly impossible once Oman- and Fujairah-loading Murban shipment volumes are exhausted this cycle,” said Richard Jones, a crude analyst at ⁠Energy Aspects, while interacting with Reuters.

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According to Gene Seroka, executive director for the Port of Los Angeles, total processed cargo volume at the facility in January was down by approximately 12% year over year, citing a decline in agricultural exports as among the major factors. He further told CNBC, “Exports to China look dismal,” suggesting that the shipping activity towards the world’s second-largest economy has dropped considerably across the United States’ major ports, with containerised exports down 26% in 2025. As per the data published by the port authorities, Los Angeles took a big hit on the crucial agricultural export of soybeans.

In early 2026, President Donald Trump announced China was considering purchasing an additional eight million metric tons of American soybeans (totalling 20 million) for the current season, following the October 2025 agreement to buy 12 million tons. Soybeans coming out of the Port of Los Angeles to China were down 80% last year, and despite the high-profile declaration from the Republican, no improvement was seen in either November or December after the initial discussions between the world’s two largest economies.

“It’s a really important part of the overall export strategy here. Argentina and Brazil have picked up a lot of the contracts for China on soybeans,” Seroka said, while adding that any increase in the American farm sector’s ability to export will take time.

“These are not transactional-type applications. These are agreements that are for the last three, six, and twelve months in duration. So, it’ll be yet another cycle before the US soybean exporter has a chance to bid and get into the game,” the senior official added.

“The Port of Los Angeles reported roughly 812,000 twenty-foot equivalent units (TEUs) for January, including imports, exports and empty containers. In January 2025, roughly 924,000 TEUs were reported, fuelled by front-loading of freight ahead of not only the major holiday period in Asia but the start of President Trump’s second-term tariffs. Breaking out the container count, January imports were 421,000 container units, down almost 13% from last year’s higher levels. On the export side, 104,000 container units were processed, a close to 8% drop year over year,” CNBC reported.

“Empty export containers that during times of high demand are sent back to Asia, a forward-looking indicator of Asia demand, came in at 286,000 TEUs, a 12.5% drop from last year,” the port authority stated.

According to Seroka, elevated 2025 numbers from a period when importers were scrambling to get cargo in ahead of Trump tariffs will continue to be a factor in comparisons throughout 2026.

“US trade policy remains largely uncertain, and I expect that to continue,” he concluded.

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The development also aligns with the North African country’s efforts to streamline procedures, maximise the benefits of trade agreements, and protect local industry in line with international agreements.

The newly released data said, “Egyptian gold exports also saw a substantial increase, reaching USD 7.6 billion in 2025 compared to USD 3.2 billion in 2024, an increase of USD 4.4 billion,” while indicating that the largest markets for Egyptian non-oil exports in 2025 included the UAE, Turkey, and Saudi Arabia, as well as Italy and the United States.

The most important export sectors included building materials at USD 14.9 billion, followed by chemicals and fertilisers (USD 9.4 billion) and food industries (USD 6.8 billion). In October 2025, Egypt’s credit rating was upgraded by S&P Global to “B” from “B-,” while Fitch reaffirmed its “B” rating, citing progress in reforms and macroeconomic stability.

S&P said at the time that the upgrade reflects reforms implemented over the past period by the country, including the liberalisation of the foreign exchange regime, which boosted competitiveness and fuelled a rebound in growth. The announcement also coincided with Prime Minister Mostafa Madbouly’s observation, as the latter stated that both rating agencies’ decisions signal confidence in his government’s reform agenda and its expected returns.

In September, Egypt’s Ministry of Planning, Economic Development and International Cooperation reported that the North African country’s economy expanded 4.4% in fiscal year 2024/25, driven by a strong fourth quarter when GDP growth hit a three-year high of 5%. This reflects the impact of the more flexible exchange rate regime adopted since March 2024, which has helped stabilise the balance of payments, while also restoring investor confidence.

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