China’s exports slow as Middle East turmoil weighs on trade

China’s exports declined in early 2026 due to escalating Middle East conflicts disrupting key shipping routes, particularly through the Red Sea and Suez Canal. Global supply chains faced delays as trade volumes dropped, with electronics and machinery—critical to quantum tech supply chains—among the hardest-hit sectors. Analysts warn prolonged instability could accelerate nearshoring trends, pushing firms to relocate production closer to China to mitigate geopolitical risks. The slowdown coincides with China’s push to dominate quantum computing exports, raising concerns about component shortages for international R&D collaborations. Economic forecasts suggest a 3-5% trade contraction if tensions persist, potentially delaying quantum infrastructure projects dependent on cross-border hardware shipments.