Foreign Trade Growth on Steady Track

A container ship departs from Qingdao Port in Shandong province. Recent insights suggest that as global demand continues to rise, China's foreign trade is anticipated to experience steady growth in the upcoming months, outpacing the seasonal fluctuations that have been typical in previous years.

Experts and exporters highlight that the stability of China's foreign trade sector is bolstered by favorable global demand alongside ongoing policy adjustments, setting the stage for consistent performance.

According to data from the General Administration of Customs, China’s foreign trade saw a 4.9 percent increase year-on-year, reaching 39.79 trillion yuan ($5.5 trillion) during the January-November period. This period also noted a 6.7 percent annual rise in exports, totaling 23.04 trillion yuan.

Bai Ming, affiliated with the Academic Degree Committee at the Chinese Academy of International Trade and Economic Cooperation in Beijing, indicates that exports are likely to keep growing in the coming months due to increasing overseas demand. Additionally, there is an observable trend among foreign importers stockpiling goods in anticipation of potential tariffs from the United States next year.

In November, China experienced a 5.8 percent increase in exports compared to the previous year, marking eight consecutive months of monthly foreign trade growth.

The growth trajectory of China's exports in November surpassed seasonal expectations, which can be attributed to robust overseas orders, a resurgence in electronics demand, and increased imports by foreign retailers seeking to sidestep forthcoming tariffs, as noted by Zhou Maohua, a researcher at China Everbright Bank.

Geographically, China has preserved growth in its traditional markets, including the European Union and the United States, over the past eleven months. Exports to the Association of Southeast Asian Nations (ASEAN) and nations engaged in the Belt and Road Initiative, as well as Africa and South America, have equally displayed commendable growth.

For instance, during the first 11 months, foreign trade with the United States and countries involved in the Belt and Road Initiative grew by 4.2 percent and 6 percent year-on-year, respectively.

Lyu Daliang, who oversees the statistics and analysis department at the General Administration of Customs, mentioned that private businesses are pivotal in fostering technological and industrial innovation, thus contributing long-term momentum to China's foreign trade growth.

In the first eleven months, over 150,000 private firms participated in the foreign trade of high-tech products, with total import and export values witnessing a remarkable 12.9 percent year-on-year surge, as per GAC statistics.

During the same timeframe, exports of electromechanical products from China increased by 8.4 percent year-on-year, amounting to 13.7 trillion yuan, making up 59.5 percent of the overall export value.

In light of the complex and evolving external landscape, exporters have already begun strategizing, expanding into emerging markets to cushion against risks posed by geopolitical tensions and unilateral protectionist policies.

As an example, tire exports from Chaoyang Longmarch Tyre Co Ltd, situated in Liaoning province, grew by 2.5 percent to 1.87 billion yuan from January to November, with nearly half of its products exported to markets within the Belt and Road Initiative, as reported by Shenyang Customs.

Jin Yongsheng, board chairman of the company, emphasized that emerging markets present significant demand in sectors such as industrial goods, building materials, and energy equipment. He noted that these markets, characterized by weak local manufacturing and heavy reliance on imports, offer stable and long-term business prospects for Chinese enterprises.

Tao Cheng, president of Jiangsu Minglida Technology Co Ltd, a Nantong-based automotive parts supplier, shared that in addition to ramping up investment in research and development, the company is working to broaden its customer base by focusing on Latin American markets to enhance its supply chain management.

According to Nanjing Customs, Jiangsu Minglida's exports of automotive pallets and parts ballooned to 129 million yuan during the January-November interval, reflecting a remarkable year-on-year increase of 105 percent.

Trade, Growth, Economy