Heritage Trade Update: Export/Import Trends Affecting Foreign Firms

Macro Trade Overview

Anhui’s trade performance in the first half of 2026 reflects the province’s deepening integration into global supply chains. Exports reached ¥518 billion (up 10.2% year-on-year), while imports totaled ¥374 billion (up 6.4%). The province maintained a healthy trade surplus of ¥144 billion.

The composition of Anhui’s trade continues to shift toward higher-value-added products. Mechanical and electrical products now account for 62% of exports (up from 58% in 2025), while traditional labor-intensive exports (textiles, footwear, furniture) declined to 14% of the total. This structural shift has significant implications for foreign firms operating in Anhui, particularly those in the manufacturing and trading sectors.

FIEs remain a critical driver of Anhui’s trade ecosystem. In H1 2026, foreign-invested enterprises in Anhui generated ¥339 billion in trade value, with 72% concentrated in the mechanical, electrical, and high-tech product categories. The top five FIE trading partners by value were the United States (¥58 billion), Germany (¥41 billion), Japan (¥36 billion), South Korea (¥31 billion), and Singapore (¥22 billion).

Key Export Trends for H1 2026

1. New Energy Vehicle Exports Surge

Anhui exported 286,000 NEVs in H1 2026, worth ¥48.5 billion — a 64% year-on-year increase. NIO’s Hefei plant alone accounted for 92,000 units, with primary markets being Europe (42%), Southeast Asia (28%), and Latin America (15%). The province’s NEV battery exports reached ¥22.3 billion, driven by CATL’s subsidiary factory in Hefei and CALB’s production base in Wuhu.

Foreign component suppliers integrated into Anhui’s NEV supply chain have benefited significantly from this export growth. A German sensor manufacturer in Wuhu reported that NEV-related export orders grew 83% year-on-year in H1 2026, as European automakers increasingly source components from China-based suppliers.

2. Integrated Circuit and Electronics Exports

Anhui’s IC exports reached ¥38.6 billion in H1 2026, up 27% year-on-year. The Hefei IC Industrial Park exported ¥12.4 billion in finished chips, primarily to Taiwan (30%), South Korea (25%), and Southeast Asian markets (22%). Testing and packaging services exported from Anhui’s OSAT facilities added another ¥6.8 billion.

Foreign semiconductor companies operating in Anhui are increasingly using the province as an export base for the broader Asian market. A US chip design company with its back-end operations in Hefei reported that 65% of its Asian-market shipments now originate directly from Anhui rather than being routed through Singapore or Hong Kong.

3. Advanced Machinery and Industrial Equipment

Exports of CNC machine tools, industrial robots, and specialized manufacturing equipment from Anhui reached ¥31.2 billion in H1 2026, growing 18% year-on-year. Key markets included India (22%), Vietnam (18%), Indonesia (14%), and Russia (11%). The Belt and Road Initiative (一带一路, Yīdài Yīlù) continues to drive demand for Anhui-made construction and infrastructure equipment in Central Asian and African markets.

4. Green Energy and Environmental Products

Anhui’s solar PV module exports totaled ¥42.8 billion in H1 2026, representing 18% of China’s total PV module exports. Despite ongoing trade disputes with the EU and US over anti-dumping measures, Anhui’s PV exports grew 22% year-on-year, driven by diversification into Middle Eastern (32% of exports), Southeast Asian (28%), and Latin American (18%) markets.

Import Trends Affecting Foreign Firms

1. Industrial Machinery and Equipment Imports

Anhui imported ¥68.4 billion in industrial machinery during H1 2026, up 12% year-on-year. Germany (¥18.2 billion), Japan (¥14.6 billion), and the United States (¥11.3 billion) were the top three sources. The strongest demand categories included semiconductor fabrication equipment (¥15.8 billion), precision machine tools (¥9.6 billion), and robotic systems (¥7.2 billion).

Foreign machinery exporters to Anhui should note that the province’s “Made in Anhui 2026” initiative now includes preferential customs clearance for imported advanced manufacturing equipment, reducing average clearance time from 4.2 days to 1.8 days for qualifying items.

2. Raw Materials and Intermediate Goods

Imports of raw materials totaled ¥96.2 billion in H1 2026, with the largest categories being:

• Iron ore and concentrates: ¥18.4 billion (primarily from Australia and Brazil for Ma’anshan’s steel industry)
• Copper and copper products: ¥12.6 billion (from Chile, Peru, and the DRC)
• Crude oil and petroleum products: ¥22.8 billion (processed through Anqing’s petrochemical cluster)
• Plastics and chemical raw materials: ¥14.2 billion (from South Korea, Saudi Arabia, and Southeast Asia)
• Electronic components: ¥28.1 billion (from Taiwan, South Korea, Japan, and Malaysia for Hefei’s IC and electronics industry)

Foreign firms relying on imported raw materials should monitor the evolving tariff landscape. In Q2 2026, China reduced import tariffs on 38 categories of industrial raw materials including specialty steels, advanced polymers, and rare earth processing chemicals, benefiting manufacturing FIEs in Anhui by an estimated ¥620 million in duty savings.

3. High-Technology Product Imports

Anhui’s imports of high-technology products reached ¥124.6 billion in H1 2026, accounting for 33% of total imports. The largest sub-categories were:

• Computer and telecommunications equipment: ¥42.8 billion
• Electronic components and parts: ¥38.4 billion
• Measuring, testing, and control instruments: ¥18.6 billion
• Medical and pharmaceutical products: ¥12.2 billion
• Aerospace and aviation components: ¥8.4 billion

Anhui Free Trade Zone Trade Impact

The Anhui Pilot Free Trade Zone (AH-FTZ), comprising three areas (Hefei, Wuhu, and Bengbu), has emerged as a major driver of trade growth. In H1 2026, the AH-FTZ accounted for ¥176 billion in trade (19.7% of Anhui’s total), representing 14.3% year-on-year growth — significantly outpacing the provincial average of 8.6%.

Key FTZ trade advantages for foreign firms include:

• Same-day customs clearance: AEO-certified FIEs within the FTZ now achieve customs clearance in an average of 3.2 hours for green-channel shipments, compared to 8.4 hours outside the FTZ.
• Bonded warehousing: Foreign companies can store imported goods in FTZ bonded warehouses for up to 5 years without paying duties or VAT, paying only upon withdrawal for domestic sale. Over 480 FIEs currently utilize AH-FTZ bonded warehousing.
• Cross-border e-commerce zone: Hefei’s cross-border e-commerce comprehensive pilot zone handled ¥8.2 billion in B2C export transactions in H1 2026, with 340 registered foreign companies using the platform for direct-to-consumer sales into China.
• Global repair and re-manufacturing: Twelve foreign companies have established global repair operations within the AH-FTZ, importing defective products for repair and re-export under simplified customs procedures.

RCEP and Regional Trade Integration

The Regional Comprehensive Economic Partnership (RCEP) continues to reshape trade patterns for Anhui’s foreign firms. Key developments in H1 2026 include:

• Tariff reductions: The third round of RCEP tariff reductions took effect on January 1, 2026, bringing tariffs on 78% of goods traded between China and other RCEP members to zero. For foreign firms importing from or exporting to RCEP countries, this translates to average duty savings of 3.8%.
• Cumulative rules of origin: More foreign firms in Anhui are leveraging RCEP’s cumulative rules of origin, which allow materials sourced from any RCEP member to count as originating content. A Japanese auto parts manufacturer in Wuhu reduced its export tariff to Thailand by 8.2% by combining Chinese and Vietnamese components.
• Services trade: RCEP’s services trade liberalization provisions have enabled 28 foreign service companies in Anhui to expand cross-border service delivery to RCEP markets without establishing local presence.

Trade Compliance Updates

New Customs Audit Focus Areas

Hefei Customs District has announced intensified audit activities for H2 2026, with three priority areas directly affecting foreign firms:

1. Transfer pricing and customs valuation alignment: Customs now systematically cross-references customs declarations with corporate tax filings to identify valuation gaps. FIEs with related-party transactions face increased scrutiny, with 34 targeted audits conducted in Q1-Q2 2026 resulting in ¥76 million in additional duty assessments.
2. HS code classification errors in the electronics sector: Hefei Customs has flagged a 22% misclassification rate in electronics imports, particularly for hybrid products that combine computing, communication, and measurement functions. Penalties for intentional misclassification have been increased to 1–3× the duty evaded.
3. Export control compliance for dual-use items: Anhui companies exporting items potentially subject to China’s Export Control Law now face mandatory self-declaration requirements. Fifteen foreign firms were subjected to post-export verifications in H1 2026, with two facing temporary export license suspensions.

Documentation Requirements Update

Beginning September 1, 2026, all FIEs in Anhui must submit electronic customs declarations through the upgraded China International Trade Single Window platform. The new platform requires additional data fields including beneficial ownership information for related-party transactions, country-of-origin certification for preferential tariff claims, and manufacturing cost breakdowns for processing trade declarations. Foreign firms should ensure their customs brokers and internal systems are updated to comply with these new requirements.

Currency and Exchange Rate Implications

The Chinese yuan (CNY) has traded in a range of 7.12–7.34 per USD during H1 2026, with an average depreciation of approximately 2.8% year-on-year. This depreciation has benefited Anhui’s exporters, with export-oriented FIEs reporting an average margin improvement of 1.2–1.8 percentage points attributable to the weaker yuan. However, import-dependent FIEs — particularly those sourcing raw materials or components from overseas — have experienced cost increases.

For H2 2026, analysts expect the yuan to trade in a 7.20–7.50 range against the USD, with potential volatility around the US presidential election in November. Foreign firms are advised to review their hedging strategies and consider using cross-currency swaps or forward contracts offered by Anhui-based banks including Bank of China Anhui Branch and HSBC Hefei.

Trade Outlook for H2 2026

Several factors will shape Anhui’s trade environment in the second half of 2026:

• US-China trade tensions: Potential escalation of tariff disputes following the US election cycle could affect Anhui’s exports of NEVs, electronics, and industrial machinery to the US market (¥58 billion in H1 2026). Foreign firms with US exposure should develop contingency plans.
• EU CBAM transition: The first CBAM reporting deadline for affected products (steel, aluminum, cement, fertilizers, electricity, hydrogen) falls on January 31, 2027. Anhui-based FIEs exporting these products to the EU should begin data collection now.
• ASEAN market expansion: Anhui’s trade with ASEAN countries grew 16.4% in H1 2026, driven by RCEP benefits and increasing demand for Anhui-manufactured machinery and electronics. This trend is expected to accelerate in H2 2026.
• Port of Wuhu expansion: The ¥4.2 billion expansion of the Port of Wuhu, scheduled for completion in Q4 2026, will increase container handling capacity by 40% and reduce vessel turnaround times from 18 to 12 hours.

How to Stay Informed