By Liu Xiangdong
Since the beginning of this year, China’s foreign trade has maintained strong growth despite various external shocks and challenges. In September, the value of imports and exports exceeded 5 trillion yuan (about 749.81 billion) for the first time in a single month.
This robust foreign trade performance is evidenced not only by rapid expansion and concurrent improvements in both volume and quality of trade, but also by the vitality and resilience of high-quality development of China’s economy.
China’s foreign trade is growing in both scale and quality.
Trade is expanding rapidly. China has become a major trading partner of 169 countries and regions. In the first three quarters of this year, China’s total goods imports and exports grew 18.8 percent year on year, with growth accelerating quarter by quarter from 15.3 percent in the first quarter to 18.3 percent in the second and 22.3 percent in the third.
China is both a “super seller” and a “super buyer” in the global market. As demand in its vast domestic market continues to be unleashed, imports rose 22.3 percent in the first three quarters. More international tourists are also choosing to travel and shop in China.
The composition of traded goods is optimizing. China continues to promote industrial transformation and innovation, accelerating the intelligent, green, and integrated development of manufacturing. This is driving continued improvements in the structure of both exports and imports, with exports becoming increasingly high-tech and green, and imports increasingly innovative and high-quality.
In the first three quarters, exports of green products such as electric vehicles, lithium-ion batteries, and wind turbines and their components rose 72.3 percent, 36.4 percent, and 22.4 percent, respectively. Integrated circuit exports surged 99.1 percent.
Meanwhile, demand remained strong for intermediate goods, upstream raw materials, and quality products from around the world. Imports of products such as fresh durians from Malaysia, salmon from the Faroe Islands, olive oil from Italy, and perfumes from France all recorded relatively rapid growth.
Trade resilience is strengthening. Despite a complex and volatile external environment, China has maintained its position as the world’s largest trader in goods. In the first three quarters, its trade with more than 180 countries and regions grew year on year. Imports and exports with its free trade partners increased 30 percent, accounting for more than 70 percent of the increase in total foreign trade. This underscores the results of China’s long-term efforts to diversify its trading markets.
Behind this strong performance is the continued vitality of industrial innovation and the growing supply of high-quality products in China.
Emerging industries in fields such as artificial intelligence, new energy, and new materials continue to post rapid growth, while new growth drivers represented by advanced manufacturing, the digital and intelligent economy, and modern services are developing quickly.
In the first three quarters, emerging industrial growth drivers contributed more than half of the growth in industrial output.
China is implementing an “AI Plus” initiative to promote the digital and intelligent transformation of traditional manufacturing. Over the same period, the value added of the manufacturing of digital products by industrial enterprises above the designated size grew 13.6 percent year on year.
Through technological upgrading and digital and intelligent transformation, many Chinese companies have increased the added value of their products and significantly enhanced their overall competitiveness.
At the same time, China is accelerating the adoption of green technologies, including energy conservation, carbon reduction, cleaner production and resource recycling. This is spurring the rapid development of green industries such as new energy vehicles, power batteries, and energy-saving and environmental protection equipment, while significantly improving industrial energy efficiency and providing strong support for exports of green products.
China’s advantages in foreign trade will continue to expand.
First, opening-up policies are becoming more favorable and convenient. In recent years, China has signed free trade agreements with more countries and fully implemented zero tariffs for 63 countries. It has deepened economic and trade cooperation with Belt and Road partner countries and introduced special initiatives to facilitate cross-border trade, further removing bottlenecks throughout the foreign trade process.
China has also advanced mutual recognition of Authorized Economic Operator (AEO) programs with its trading partners. The scope of its visa-free transit policy has expanded to 57 countries, further facilitating foreign trade and international exchanges.
Second, channels for opening up are becoming more efficient and accessible. China is proactively developing high-level platforms for opening up and building diverse, interconnected cross-border logistics networks.
It continues to promote regular operations of the China-Europe Railway Express, upgrade opening-up platforms along the New International Land-Sea Trade Corridor in western China, and expand multimodal transport services such as air-to-air transfers and air-rail intermodal transport.
In the first three quarters, imports and exports transported by air, road and rail all recorded significant growth, rising 60.1 percent, 34.1 percent and 16.4 percent, respectively.
Third, the space for opening up is becoming more diverse and expansive. China is steadily diversifying its markets, broadening its network of trading partners.
Chinese foreign trade companies are actively adapting to changes in the international market. In response to increasingly personalized consumer demand and a wider variety of use scenarios around the world, they continue to develop new trade formats and offer more customized, user-friendly products and services to global consumers. Products such as portable split air conditioners and compact portable filming devices are gaining popularity.
Overall, China’s strong foreign trade growth is injecting powerful momentum into global trade and economic growth. Although the international environment remains unpredictable and subject to considerable uncertainty, the world economy continues to demonstrate resilience. Backed by the advantages of its vast domestic market and complete industrial system, and with existing and new policy measures working in synergy, China will continue to unlock the vitality of its foreign trade.
(Liu Xiangdong is deputy director and research fellow of the department of research management and information services, China Center for International Economic Exchanges.)
China’s foreign trade expands in both scale and quality
