Economy

Steady Growth in China's Foreign Trade

Published December 11, 2024

A container ship leaves Qingdao Port, Shandong province. (YU FANGPING/FOR CHINA DAILY)

With global demand increasing, experts predict that China's foreign trade will experience stable growth in the upcoming months. This trend is expected to surpass the usual seasonal variations seen in previous years.

The strength of China's foreign trade is attributed to favorable international demand coupled with ongoing adjustments in policy, creating a positive environment for sustained performance. According to the General Administration of Customs, China's foreign trade rose by 4.9 percent year-on-year to 39.79 trillion yuan ($5.5 trillion) from January to November. Exports alone increased by 6.7 percent to reach 23.04 trillion yuan during the same period.

Bai Ming, a trade expert at the Chinese Academy of International Trade and Economic Cooperation, believes that exports will continue to grow in the near future, largely due to increasing overseas demand and foreign importers proactive in stocking up in anticipation of possible tariffs from the United States next year.

In November, China's exports saw a 5.8 percent yearly growth, marking eight consecutive months of monthly trade value increases. Zhou Maohua, a researcher at China Everbright Bank, noted that the rise in exports last month was largely due to a steady influx of overseas orders, a recovery in demand for electronics, and foreign retailers increasing imports to mitigate the effects of tariffs.

China has also maintained solid trade growth in traditional markets such as the European Union and the United States over the past 11 months. Notably, trade with the Association of Southeast Asian Nations, as well as countries involved in the Belt and Road Initiative and various regions like Africa and South America, has been robust. For instance, trade with the United States and Belt and Road economies grew by 4.2 percent and 6 percent year-on-year, respectively, in the first 11 months.

Lyu Daliang, the director of the GAC's department of statistics and analysis, highlighted the essential role of private enterprises as key players in technological and industrial advancement, which will contribute significant momentum to China's foreign trade growth in the long run. More than 150,000 private firms engaged in high-tech foreign trade in the same period, with their total import and export value rising by 12.9 percent annually.

China's exports of electromechanical products also rose by 8.4 percent year-on-year, reaching 13.7 trillion yuan, which accounts for 59.5 percent of total exports. As the global trade landscape remains complex, some exporters are pivoting to emerging markets to protect against risks associated with geopolitical tensions and protectionist measures.

For instance, Chaoyang Longmarch Tyre Co Ltd in Liaoning reported a 2.5 percent year-on-year increase in tire exports to 1.87 billion yuan during the first 11 months, with about half of its shipments going to Belt and Road markets. Board chairman Jin Yongsheng stated that growing demand in emerging markets for industrial goods and building materials, alongside weak local manufacturing, creates stable long-term opportunities for Chinese firms.

Tao Cheng, president of Jiangsu Minglida Technology Co Ltd, an auto parts supplier, mentioned their investment in research and development while actively broadening their customer base to target Latin American markets for a more robust supply chain. The company achieved a remarkable 105 percent increase in exports of automotive parts to reach 129 million yuan during the January-November period.

trade, economy, growth