China Calls for Strait of Hormuz to Remain Open

China’s trade surplus widened to USD 105.43 billion in May 2026 from USD 102.72 billion in the same period of 2025, surpassing expectations of USD 92.1 billion and marking the largest trade surplus since January. Export growth accelerated to 19.4% year-on-year, reaching a record high of USD 376.78 billion, up from April’s 14.1% increase and above forecasts of 15% as companies continued to build inventories to pre-empt energy price pressures stemming from the ongoing war in the Middle East. Meanwhile, imports jumped 27.4% yoy to USD 271.35 billion, above expectations of 25%, and accelerated from 25.3% growth in April amid the government's efforts to boost domestic consumption. China’s trade surplus with the US climbed to USD 26.02 billion in May from USD 23.07 billion in April. For the first five months of 2026, China’s trade surplus reached USD 451.71 billion, down from USD 471.9 billion in the same period of 2025, as exports grew 15.5% while imports rose at a faster pace of 24.5%.

Beijing signaled during the U.S.-China summit that China wants the Strait of Hormuz to remain open without restrictions, tolls, or military control, U.S. Trade Representative Jamieson Greer said. Speaking to Bloomberg TV, Greer stated: “It’s really important for China to have the Strait of Hormuz open, no tolling, no military control.” He added that Washington views China as acting “very pragmatic” regarding Iran and believes Beijing does not want to be “on the wrong side of this.” Greer also said both China and the U.S. want peace in the region, expressing confidence that Beijing would help limit military support for Iran amid rising tensions in the Middle East.

China’s trade surplus narrowed to $84.82 billion in April 2026 from $95.85 billion in the same period of 2025, but surpassed market expectations of $83.3 billion. Export growth accelerated sharply to 14.1%, reaching a record high of $359.44 billion, up from March’s 2.5% rise and much faster than forecasts of 7.9%, due to seasonal factors, as companies rushed to stockpile components from the manufacturing powerhouse amid fears that the Iran war could push input costs even higher. Meanwhile, imports surged 25.3% year-on-year to $274.62 billion, above expectations of 15.2% and marking the second consecutive month of record-high imports, though slightly lower than the 27.8% jump in the previous month. The trade surplus with the US stood at $23.07 billion in April. For the first four months of 2026, China’s trade surplus reached $347.70 billion, down from $368.8 billion in the same period of 2025, with exports rising 14.5% while imports grew at a faster 23.6%.