In the first half of 2026, China's foreign trade demonstrated a year-on-year growth of 16.9%, reaching a volume of 25.47 trillion yuan (equivalent to approximately $3.75 trillion). This marked the first time that trade volume for such a period exceeded the 25 trillion yuan mark, according to official data released on Tuesday.
According to data from the General Administration of Customs (GAC), China maintains its status as the world's largest goods trader amid confident figures. Exports increased by 13.4% year-on-year to 14.73 trillion yuan, sustaining growth for the 11th consecutive quarter. Meanwhile, imports grew by 22.1% to 10.74 trillion yuan, which is 8.7 percentage points higher than export growth rates and contributed to a more balanced development of trade.
In the first half, there was a 3.4% increase in the import of raw materials, including metals and energy resources. Imports of mechanical and electrical products rose by 28%, while agricultural product imports grew by 8.6%.
During a press conference, Wang Jun, Deputy Head of GAC, noted that China's foreign trade maintained a stable momentum in the first half of the year, characterized by strong growth, stable operation, and noticeable progress in stabilizing scale and improving structure.
In the second quarter of the current year, the total volume of imports and exports reached 13.61 trillion yuan, representing an 18.4% increase compared to the previous year, marking the highest quarterly growth rate since the third quarter of 2021. In June alone, trade value grew by 24.2% year-on-year, signifying 17 consecutive months of growth.
Trade with countries participating in the Belt and Road Initiative increased by 14.8% in the first half, reaching 12.97 trillion yuan, accounting for 50.9% of the total foreign trade volume. Trade with neighboring countries jumped by 20.6%, while trade with Latin America, Africa, and the EU showed growth of 16.2%, 19.6%, and 10.2%, respectively. Trade with Central and Eastern European countries also grew by 11% in the first half, extending ten years of continuous growth.
From January to June, private enterprises contributed to 57% of the total trade value, with their imports and exports growing by 17% to 14.53 trillion yuan. Enterprises with foreign investment and state-owned enterprises showed growth rates of 17.1% and 16.8%, respectively.
Eastern regions of China led in trade scale, reaching over 20 trillion yuan in imports and exports, which is 16.5% more and accounts for 78.8% of the national total. Meanwhile, western, central, and northeastern regions recorded growth of 20.3%, 20%, and 8.6%, respectively.
Exports of mechanical and electrical products increased by 20.1% to 9.36 trillion yuan, accounting for 63.5% of total exports, which is 3.5 percentage points higher year-on-year. High-tech product exports soared by 39%, reaching 3.26 trillion yuan, and exports of own-brand goods grew by 25.4%, increasing their share of total exports by 2.4 percentage points.
Wang emphasized that the first-half trade results reflect key characteristics of China's current economic activity: stability, innovation, vitality, and integration with the rest of the world. A new growth stimulus is also gaining momentum: imports and exports of computing equipment, such as electronic components and computer parts, surged by 56.6% in the first half, reaching 5.13 trillion yuan. Furthermore, there was strong export growth in AI-based products, eco-friendly low-carbon goods, and high-end equipment.
In the first half, 267,000 foreign trade enterprises expanded their business into new markets, with the aggregate value of their trade growing by 22.6%, accounting for nearly 70% of the national total, added Wang.
Liu Dalian, Director of the GAC Statistics and Analysis Department, noted that China has long held the position of the world's largest exporter of sports goods, accounting for over 40% of global exports, and many Chinese goods were seen at the 2026 FIFA World Cup. In the first half of 2026, China's export of sports goods and equipment reached 67.53 billion yuan, of which ball exports amounted to 3.08 billion yuan.
In the first half of the year, China's export of home appliances reached 360.96 billion yuan. Among these, against the backdrop of frequent global heatwaves, the export of cooling devices such as air conditioners, electric fans, and refrigerators totaled 107.91 billion yuan, meeting the needs of many households, according to Liu.
Despite external difficulties for foreign trade in the second half of the year, Wang noted that the fundamental foundations of China's foreign trade remain solid, supported by a strong innovative impetus, active market participants, and a high level of openness. He expressed confidence and the ability to maintain positive foreign trade dynamics, adding that customs authorities will continue to strengthen supervision, optimize services, and promote cross-border trade to sustain this positive trend and facilitate the successful launch of the fifteenth five-year plan (2026–2030).
George Airport is preparing for a significant upgrade as it reaches its current passenger capacity. This step is driven by sustained growth, which highlights the increasing appeal of the Garden Route city as a tourist center and business hub.
In 2025, over 911,000 passengers passed through the airport, an 11% increase from the previous year. This surge in demand prompted Airports Company South Africa (Acsa) to begin a planned expansion program valued at 310 million rand. This modernization will allow the terminal to increase its throughput capacity to two million passengers annually.
Construction work is scheduled for October. The upgrade takes place against the backdrop of George's rapid development, supported by increased tourism, population growth, and investments in sectors such as healthcare, retail, and real estate. As more people choose to live, work, or vacation in the region, the strain on transport infrastructure increases.
As the main entry point to the Garden Route, George Airport plays a critical role in connecting visitors to one of South Africa's most popular travel destinations. The expected increase in passengers is anticipated to further stimulate local tourism, benefiting accommodation providers, restaurants, tour operators, car rental companies, and other businesses dependent on tourist spending.
Although Acsa has confirmed the investment, it has not yet published detailed plans regarding the scope of the 310 million rand project. Nevertheless, the expansion is expected to increase passenger capacity and significantly improve the overall travel experience.
This development reflects a broader trend in South Africa's aviation sector: regional airports are becoming increasingly important as travelers prefer direct flights to holiday destinations rather than making connections at large national city airports. Airport marketing director Mzukisi Deliwe noted that George's continuous growth demonstrates the growing importance of regional airports. He stated that 'the expansion of George will create more opportunities for interaction with travel enthusiasts, business owners, second home owners, and visitors heading to the Garden Route.'
George Airport is among several regional airports slated for modernization under Acsa's broader R22 billion capital investment program. Other airports set to benefit include King Phalo International Airport, Chief Dawid Stuurman International Airport, Upington International Airport, Bram Fischer International Airport, and Kimberley Airport. For travelers, this confirms confidence in the Garden Route's tourism economy and the growing role of the region as a key domestic tourism destination in South Africa. Acsa has not yet specified whether the project will include additional flight routes or how construction work might affect passengers during the process.
Chery has announced that the Tiggo 4 Cross will be the first model manufactured at the recently acquired line in Rosslyn. This factory is located near Pretoria in South Africa.
The production facility was purchased from Nissan and was officially opened at the beginning of this month. Before production begins, which is scheduled for the second half of 2027, significant modernizations are expected at the plant.
Furthermore, Chery's sister brand, Jaecoo, previously confirmed that the compact crossover J5 will be assembled specifically at the Rosslyn plant. The J5 model shares a close foundation with Chery's Tiggo 4 Cross, as does the Lepas L4, which is also being considered for local production.
Chery is conducting a feasibility study for the production of a local pickup truck (bakkie) at a later stage, but a final decision has not yet been made. The KP31 pickup is currently the focus for local implementation.
The company confirmed that both gasoline and hybrid versions of the Tiggo 4 Cross will be produced locally, although the full range of models and pricing will be announced closer to the launch. The production of the hybrid version will expand South Africa's experience in new energy vehicle manufacturing. Among other hybrids currently produced in the country are the Toyota Corolla Cross hybrid, as well as the BMW X3 and Ford Ranger plug-in hybrid, the latter being intended only for export.
According to Chery representatives, offering both internal combustion engine (ICE) and hybrid (HEV) variants will allow the company to meet the steady demand for traditional gasoline cars while supporting the growing number of buyers in South Africa who are considering more economical electrified alternatives.
It is planned that by the end of 2027, as production volumes increase, Chery South Africa will produce 15,000 vehicles, with further growth expected as operations develop. The company has not disclosed individual sales figures for the Tiggo 4 Cross, but combined with the previous generation Tiggo 4, it is one of the best-selling SUVs in the country, having sold 11,322 units in the first half of this year. Currently, the Cross is among the least expensive SUVs in the country, with prices ranging from R279,900 to R469,900.
The local Chery project is expected to create about 3,000 direct and indirect jobs, and 692 employees were retained from Nissan's former operations. In the long term, Chery intends to transform the Rosslyn site into a larger automotive industrial center that will include not only manufacturing but also research, development, and skills development. Additionally, it is envisioned as a base for exports to the African continent.
Manufacturing companies are actively implementing artificial intelligence, but industry specialists emphasize that existing financing models must transform to support digital modernization and enhance the competitiveness of enterprises.
Small and medium manufacturing enterprises in South Africa are encouraged to adopt smart manufacturing and artificial intelligence technologies at a pace appropriate to their business processes. However, access to suitable financing is a critical factor in the speed of this transition. This call came amid growing pressure on manufacturers who are forced to modernize production while simultaneously managing declining output volumes, increased costs, and heightened customer demands for digital traceability and compliance.
The South African manufacturing sector contributes nearly 11% to the country's gross domestic product and was one of the three sectors that created jobs in the first quarter of 2026. Nevertheless, the sector has recorded two consecutive quarters of production decline, which underscores the necessity of improving business efficiency and competitiveness.
During a panel discussion on Industry 4.0, focusing on artificial intelligence, digitalization, automation, and smart manufacturing at the Manufacturing Indaba 2026 event, Product Manager Lula Koreshini Pillay noted that many manufacturers initially focus on the technology itself, neglecting the necessary financing for digital transformation. According to her, SMEs begin discussions about smart manufacturing by concentrating on technologies. Yet, every system upgrade, sensor, or traceability platform requires upfront costs whose return only materializes months later.
Pillay added that finding financing that accounts for the specific cash flow characteristics of manufacturing, rather than traditional lending methods, is a more complex task. She pointed out that the market needs to answer the question of modernization costs and who will finance this transition. Although manufacturers are advised to approach IDC for expansion or SEFA for guarantees, neither option solves the problem. Material and technology costs arise now, while the revenue they generate arrives only after several months. Creditworthiness verification must be based on real-time transaction data and SME inflow patterns so that working capital can be structured according to the realities of the factory floor.
Research also indicates that the adoption of AI among South African companies is already well underway. According to the News24 x Lula small business survey, based on responses from 1088 SME owners in January of this year, over two-thirds of South African enterprises either use AI daily or are actively experimenting with the technology. Manufacturers are increasingly using AI to optimize production lines, reduce waste, and improve operational efficiency, thereby meeting growing customer demands for digital traceability and regulatory compliance.
However, timeliness remains a major obstacle. Typically, manufacturers begin inventory preparation in the second half of the year to meet peak demand in retail, wholesale, and logistics in September, October, and November. This means companies have to invest in equipment, software, cybersecurity systems, machine upgrades, and staff training long before receiving income.
In Pillay's view, delays in securing funding can ultimately affect a manufacturer's ability to secure future contracts and remain competitive. She noted that there are numerous expense categories in this modernization gap: sensors, monitoring systems, software licenses, equipment upgrades, cybersecurity, traceability platforms, and skills development—all competing for limited capital.
Garth Rossiter, Director of Credit and Capital at Lula, stated that traditional credit models often fail to recognize the unique cash flow cycle of manufacturing enterprises. He emphasized that traditional banks tend to analyze reports and historical financial information from the previous year, but this does not reflect the actual functioning of a factory.
Rossiter explained that if a business owner spends money on raw materials in July but won't see revenue until November, they require financing that understands this interim period. Operational modernization is no longer an optional measure—it is a matter of survival. The winners are those manufacturers who find financial partners that align with the real rhythm of their trade. He added that financing products built around projected cash flow could help manufacturers invest in technology without placing excessive strain on working capital.
Lula reported having provided over 3,300 manufacturing enterprises with more than 3 billion early payments to date. The average advance received by manufacturers is 203,000 rand, making this sector the second largest for the company in terms of financed volume. Rossiter concluded that quick access to finance can determine whether manufacturers can successfully modernize or lose opportunities to competitors. He stressed that the ability to obtain funding precisely when an opportunity arises allows plans not to be postponed, but to actually be realized, which is the key difference between a growth plan on paper and real scaling.
Industry stakeholders believe that financial solutions adapted to manufacturing cycles can play a vital role in supporting SMEs in adopting AI, increasing productivity, and strengthening South Africa's industrial competitiveness.
