Summary:
- China’s Foreign Trade Hits Record $3.46 Trillion.
- China’s exports increased by 6.7% and imports rose by 5.4%.
- 6.2% growth in foreign trade in first 6 months.
China’s foreign trade in goods grew by 6.2% year-on-year to 24.83 trillion yuan ($3.46 trillion) in the first seven months of this year, setting a new record in trade volume, according to customs data released Wednesday. This growth was driven by the country’s manufacturing strength, increasing overseas demand, and a diversification of trade partners.
This robust performance highlights China’s steady growth momentum despite facing various internal and external challenges. It also suggests a positive outlook for China’s trade sector, which is expected to accelerate in the latter half of the year to support the economy and achieve the 2024 GDP growth target of around 5%.
China’s trade growth has also managed to surpass the impact of protectionist measures and tariff hikes imposed by some Western countries, demonstrating the resilience and competitiveness of its manufacturing sector. Analysts note China’s ongoing role as a stabilizer and driving force in the global supply chain.
In the first seven months, China’s exports increased by 6.7% and imports rose by 5.4%, with the 6.2% growth in foreign trade surpassing the 6.1% rise recorded in the first six months.
“Since the beginning 2024, China’s economy has generally maintained a stable performance with steady progress, and foreign trade has continued to show a steady improvement,” the General Administration of Customs (GAC) said.
In July, China’s foreign trade in goods surged by 6.5% year-on-year in yuan terms, with exports up 6.5% and imports growing by 6.6%. This marks the fourth consecutive month of over 5% growth in both imports and exports, according to the General Administration of Customs (GAC).
Veteran economist Tian Yun commented to the Global Times that July’s 6.5% growth rate reflects a continuation of the strong expansion seen in the previous month. As the start of the second half of the year, this positive data suggests favorable trade conditions for the months ahead.
Tian also noted the reversal of the 0.6% contraction in imports from June, indicating that domestic demand is gaining momentum. The trade data, serving as an economic indicator, lead economists to forecast a third-quarter GDP growth of around 5%, an improvement from the 4.7% year-on-year increase in the second quarter.
Li Chang’an, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times on Wednesday that he anticipates the economy will keep rebounding through the second half of the year and is on track to meet the GDP growth target of approximately 5 percent.
“The trade strength will buffer against headwinds, including rising geopolitical tensions and gloomy global economic outlook, while more targeted stimulus will be rolled out following major tone-setting conferences, injecting new impetus into the economic development,” Li outlined.
Upward Trade Momentum
According to Tian, the strong trade momentum in July is supported by various factors, including increasing global demand and the upcoming 2024 Paris Olympic Games, which have boosted interest in “Made in China” products such as sports equipment and souvenirs.
Despite the US-led blockade against China’s industries, exports of integrated circuits rose by 25.8% year-on-year, and auto exports increased by 20.7%. This growth in vehicle exports suggests that the impact of tariffs on China’s overall trade has been limited. Analysts argue that the US’s aggressive stance on Chinese imports is counterproductive, potentially worsening inflation and contributing to fears of an economic recession due to a sharp slowdown in US job growth last week.
Li attributes the resilience of Chinese exports to the country’s comprehensive industrial chain, the robustness of high-tech trade, and enhanced trade cooperation with a more diverse range of partners. In the first seven months, trade with ASEAN, Central Asia, Latin America, and Africa totaled 7.6 trillion yuan, marking a 9.8% year-on-year increase and a 1 percentage point rise in its share of total trade. Additionally, trade with Belt and Road Initiative partners and Regional Comprehensive Economic Partnership (RCEP) members grew by 7.1% and 5.7% year-on-year, respectively.
More data available here.
Main Author: Li Xuanmin
Source: Global Times
