A year into Trump tariffs, Chinese factories and ports are buzzing with activity

Sports

A year into Trump tariffs, Chinese factories and ports are buzzing with activity

2026-02-12 03:38:41

HUZHOU, CHINA – JANUARY 27: An employee works on a beverage production line to meet the demand of the Spring Festival market at Leyuan Health Technology (Huzhou) Co., Ltd. On January 27, 2026 in Huzhou, Zhejiang Province, China.

Wang Shucheng | China Optical Group | Getty Images

After a year of tariffs imposed by US President Donald Trump that rattled exporters and customers, Chinese factories and ports are bustling with activity ahead of the Lunar New Year – even pushing up freight rates.

Chinese factory activity typically spikes at the start of the year as manufacturers race to fulfill orders and ship goods before the country enters an extended Chinese New Year holiday. This year’s pre-holiday rush looks busier than ever despite Trump’s tariffs.

“We are very busy,” said Reno Anjoran, founder and CEO of Agelian Technology, a Guangdong-based electronics manufacturer, whose factory was operating almost at full capacity after a year of tariff threats.

“We’re back to a situation where tariffs don’t seem to exist. American customers aren’t thinking about that [buying from] “Other places,” Anjoran said, adding that some customers had to pay additional costs to have the goods manufactured and shipped before the holiday.

Its factory in the city of Dongguan ships more than half of its products to the United States, keeping exports at levels seen before Trump imposed tariffs last year.

“Factories saw a jump in orders, production and profits ahead of the Chinese New Year holiday,” according to China Page, which tracks economic data from the world’s second-largest economy.

The research firm estimates that in January, industrial production jumped compared to a year ago, with domestic demand and export orders accelerating sharply on a year-on-year and monthly basis. The official production readout for January and February will be released in March.

China’s major ports handled 40% more containers during the week ending February 1 than a year earlier, according to a team of transport and logistics analysts at HSBC. This represents the fastest year-on-year growth in more than 12 months and is well above the average weekly growth of around 10% in 2025.

Take the ports of Ningbo, one of China’s most important maritime hubs: terminals are operating “beyond capacity, with the number of individual vessels increasing by more than 20%, and container gateways have been suspended,” said Jay Guo, dean of the Ningbo China Institute for Supply Chain Innovation.

High transportation costs

Guo said that severe traffic congestion has led to trucking prices rising by 80%, noting that many factories and freight forwarders will suspend operations starting Friday and resume them next Thursday.

“The CNY-focused advisory for shippers in Europe, North America and Asia indicates a clear increase in bookings from China ahead of the holiday,” said Wolfgang Lehmacher, a global supply chain and logistics expert.

However, the rise is also partly due to reduced influences from the timing of the Lunar New Year, which falls in mid-February this year, versus late January in 2025.

The surge in activity, driven by pre-holiday front-loading, has led to higher freight rates. The Shanghai Container Freight Index, a key benchmark for container freight rates from Shanghai to major global destinations, was hovering in a range of 1,400 to 1,656, in early January compared with an average level over the past 15 years of 1,337 to 1,568, according to a freight monitoring report released by HSBC on Monday.

Prices peaked three weeks earlier than the historical pattern suggests, suggesting a postponement of front-loading ahead of the holidays this year, HSBC analysts said in their note.

The HSBC shipping report showed that large container shipments to the United States were above levels during the same period in 2024 and 2025 for much of January and into February.

Air freight rates for corridors to the United States and Europe were higher than a year ago. The Baltic Stock Exchange’s Shanghai Pudong Stock Exchange Index rose 5.3% during the week ending February 2 compared to the previous week.

Companies are also moving forward with developing new products as tariff tensions ease. Follow a High-level meeting in OctoberChina obtained a one-year trade truce with Washington that kept tariffs on its goods to the United States at a lower level.

For most of 2025, China has It reduced its direct shipments to America With increasing exports to alternative markets including Southeast Asian and European countries.

Removal of risk, not separation

This noise in Chinese factories comes despite companies seeking to diversify their supply chains. Many multinational companies are accelerating “China plus one” sourcing strategies in Southeast Asia and moving closer to markets such as Mexico and parts of Europe, but continue to maintain significant production or sourcing in China, Lemacher said.

Not surprisingly, factory floors in China are bustling with visiting customers from all over the world as they place orders for the next production cycle, says Cameron Johnson, a senior partner in the business based in Shanghai. Consulting firm Tidalwave Solutions told CNBC after visiting several factories across southern China last month.

Johnson said auto, consumer and sporting goods manufacturers in southern China are “fairly busy,” working through backlogs and fielding inquiries from foreign buyers, including some from the United States.

They have waited as long as they can for the uncertainty to stop, but now they must figure out how to move forward.

Cameron Johnson

Lead Partner, Tidalwave Solutions

The visits come on the heels of a turbulent year due to Trump’s sweeping tariffs that led to a wave of panic buying and flash freezes as companies struggled with trade uncertainty and played a stop-and-go game with orders.

Johnson said business owners had “waited as long as they could for the uncertainty to stop, but now they have to figure out how to move forward.”

American customers’ interests in developing new products have recovered significantly since then, Anjooran said. “A lot of people had new products in mind but put projects on hold due to uncertainty,” he said. “Now things seem to be relatively stable.”

— CNBC’s Evelyn Cheng contributed reporting.

https://image.cnbcfm.com/api/v1/image/108263863-1770737041784-gettyimages-2258438200-vcg111617551521.jpeg?v=1770737068&w=1920&h=1080

إرسال التعليق