China’s foreign trade reached a record high in the first half of the year, driven by innovation, private-sector vitality and a more diversified global market.
China’s total imports and exports of goods reached RMB 25.47 trillion in the first half of the year. It was the first time that first-half trade had exceeded RMB 25 trillion. China’s foreign trade was up 16.9 per cent year on year.
Against a backdrop of rising global trade tensions, the latest trade data released on July 14th point to three enduring strengths behind China’s foreign trade.
Innovation Remains Key Driver
According to a United Nations report, global merchandise trade growth this year has been concentrated mainly in AI-related industries. Demand for computing power, data centres and terminal equipment continues to expand worldwide.
China has been among the main beneficiaries of the global AI boom. In the first half of the year, imports and exports of computing hardware, including electronic components and computer parts, totalled RMB 5.13 trillion, up 56.6 per cent year on year. Exports of AI-enabled bionic robots also exceeded 10,000 units, reaching more than 90 countries and regions.
China’s export mix is also moving up the value chain. More technology-intensive and higher-value-added products are entering overseas markets, becoming a key source of China’s foreign trade growth.
Wen Bin, chief economist at China Minsheng Bank, said global investment in AI remains strong. China’s strengths in AI industrial chains, new energy and other high-tech industries have become key drivers of export growth, he said.
Private Enterprises Playing Greater Role
Private enterprises remained China’s largest participants in foreign trade in the first half of the year.
More than 660,000 private enterprises recorded import and export activities. Their business scale continued to expand. They accounted for 57 per cent of China’s total trade and contributed nearly 60 per cent of overall trade growth.
Faced with changing global demand, Chinese firms have actively explored new markets and strengthened cooperation with overseas partners.
Compared with the same period last year, 267,000 foreign trade companies entered new overseas markets in the first half of this year. They recorded a 22.6 per cent increase in imports and exports, which together accounted for nearly 70 per cent of total foreign trade.
Private enterprises’ growing scale and rising share show that the foundation of China’s foreign trade has become even stronger.
Expanding Circle of Trading Partners
China has strengthened the resilience of its foreign trade by expanding opening-up and diversifying its trading partnerships.
China has now implemented zero-tariff policies for 63 countries. In the first half of the year, trade with its 31 free trade agreement partners increased by 28.1 per cent year on year, accounting for 46.5 per cent of China’s total foreign trade.
Trade with Belt and Road partner countries rose 14.8 per cent, accounting for 50.9 per cent of the total. Trade with ASEAN grew 18.2 per cent. Trade with Latin America, Africa and the European Union also recorded double-digit growth.
External challenges, however, remain. The World Bank says the global economy faces rising energy prices, persistent inflationary pressures and expectations of tighter monetary policy. The International Monetary Fund forecasts that global trade in goods and services will grow by 3.5 per cent this year, down from 5 per cent last year.
Even so, analysts say China’s foreign trade growth continues to be supported by solid manufacturing capacity and domestic demand, giving it a stronger foundation for sustained expansion. At the same time, deeper mutual trust with trading partners and China’s continued efforts to sign new free trade agreements and upgrade existing ones are expected to provide businesses with greater certainty and create new opportunities for trade.
While external uncertainties remain, the first-half figures suggest that innovation, private-sector vitality and broader international partnerships will continue to underpin China’s foreign trade in the months and years ahead.
Written by Sha Liu, charts created by Di Wang, additional reporting by CNS.
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