China’s economy is showing firmer momentum in early 2026, supported by stronger factory activity, improved holiday spending and policy efforts to keep growth stable. Reuters reported that China’s January to February economic data beat expectations, with growth helped mainly by exports, holiday consumption and an expansion in investment.
Manufacturing has been a key part of that rebound. China’s official manufacturing PMI rose to 50.4 in March from 49.0 in February, returning to expansion and marking the fastest factory growth in a year, while a private PMI survey also showed manufacturing expanding for a fourth straight month.
At the same time, businesses are adjusting to changing digital trade rules. China on April 6 issued new guidance for e commerce, including cross border trade, with policies aimed at improving coordination between domestic and international markets, expanding pilot zones for cross border e commerce and helping platforms grow overseas.
Travel is also recovering. Reuters reported on March 20 that China plans to expand its visa free entry scheme to boost tourist spending, part of a broader push to revive inbound travel and consumption as international tourism gradually rebounds.
Still, the outlook remains mixed. Reuters has warned that while growth has improved, risks from the Middle East war, higher input costs, weak household demand and the property slump could still weigh on China’s recovery in the months ahead.
