Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
In the first two months of 2026, China’s silver imports surged to multi-year highs, pulling in over 790 tonnes and marking a sharp reversal from its role as a net exporter just a year earlier. The shift comes as domestic demand has tightened local supply, pushing prices above global benchmarks and drawing metal into the country.
At the same time, Beijing’s move to require approval for silver exports has added a layer of uncertainty, reinforcing concerns about supply security. Together, these trends point to a more defensive and proactive stance by China toward silver, not just as a precious metal, but as a strategic resource of national interest.
January & February Silver Imports Hit All-Time High
China’s silver appetite is kicking off 2026 strong, hitting 790 metric tons between January and February. This marked an eight-year high for any consecutive two months on record. January accounted for 320 metric tons, while February pulled in 470 metric tons. This represents a stark reversal from 2025, when China was a net exporter of silver, shipping roughly 5,100 tons abroad.
Why China’s Silver Imports Suddenly Turned Positive
Industrial Demand: Frontrunning Rebate Expirations
China is an industrial powerhouse, with this sector boasting a 15% surge in output between January and February of 2026 and the same period in 2025. At the beginning of this year, the Chinese government allowed key export tax rebates to expire, spiking production capacity as manufacturers sought to take advantage of these discounts before their removal.
This rising demand is especially acute in the solar power sector. As one of the fastest-growing subfields, this renewable energy source accounts for about 10% of the country’s entire energy demands. For its part, silver is a fundamental component in photovoltaic cells of solar panels. In fact, solar energy alone comprises roughly 20% of global silver demand.
Investment Demand: Silver as “Affordable Gold”
As manufacturing demand spiked, Chinese retail investors pulled their weight with surging silver purchases. When silver prices hit $115/oz in January, China’s colossal investor population was largely cited as the primary catalyst. The demand for physical coins and bars strained global inventories to the extent that the Shanghai Gold Exchange had to increase margin requirements to artificially dampen purchases.
Local demand was so concentrated and sustained that the silver price in the Chinese market exceeded the London standard. This widening gap fueled precious metals arbitrage as domestic investors could optimize their profits by bringing in physical bullion from abroad at lower prices. These moves further increased silver imports.
China’s Sizable Supply Footprint
China’s influence in the silver market extends beyond mere consumption. The country accounts for between 10% of discovered reserves, with underground stockpiles reaching 70,000 metric tons. In addition, Beijing oversees the production of 3,300 metric tons of silver annually, representing about 13% of global mine output, according to the U.S. Geological Survey.
Despite strong domestic production, early 2026 demand indicates China’s internal supply is no longer sufficient. This has turned the country into a net draw on global silver markets, further tightening an already constrained supply environment.
Fresh Export Restrictions
This record-setting spike in Chinese silver imports comes shortly after Beijing placed export restrictions on the shiny metal, adding a layer of uncertainty to global supply flows. This move followed the Trump administration’s placement of silver on the U.S. critical minerals list.
In a tightening market, that uncertainty can encourage stockpiling behavior and reduce reliance on global inventories, amplifying the impact of rising domestic demand. This constriction of the silver supply inevitably leads to higher silver prices, which is partially why 2026 silver price predictions look so bullish.