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

Core Insights - Chinese factories and ports are experiencing heightened activity ahead of the Lunar New Year, despite the impact of U.S. tariffs, indicating resilience in the manufacturing sector [1][2]. Group 1: Manufacturing Activity - Factory activity in China typically surges at the beginning of the year as manufacturers rush to fulfill orders before the Chinese New Year holiday [2]. - A Guangdong-based electronics manufacturer reports operating at nearly full capacity, with American customers continuing to place orders despite tariff concerns [2][3]. - The China Beige Book indicates that factories have seen a significant increase in orders, production, and earnings ahead of the holiday [3][4]. Group 2: Export and Shipping Trends - Industrial output in January is estimated to have increased significantly compared to the previous year, with both domestic and export orders accelerating sharply [4]. - Major Chinese ports handled 40% more containers during the week ending February 1 compared to the same period last year, marking the fastest year-on-year growth in over 12 months [5]. - Ports in Ningbo are operating beyond capacity, with individual vessels overbooked by more than 20%, leading to a suspension of container gate-in [6].