The General Administration of Customs (GAC) released data on October 14, showing that China’s total imports and exports of goods reached 39.94 trillion yuan in the first three quarters of this year, representing a year-on-year increase of 18.8%. Exports stood at 23.2 trillion yuan, up 16.4% YoY; imports hit 16.74 trillion yuan, rising 22.3% YoY. Effectively coping with various external shocks and challenges, China’s foreign trade maintained sound growth momentum.

Wang Jun, Spokesman and Vice Minister of the GAC, briefed reporters at a press conference held by the State Council Information Office. He noted that despite the volatile and complex international landscape and emerging risks and challenges, the drivers and vitality of China’s foreign trade have strengthened with notable resilience. There is a solid foundation and support for continued import and export growth in the fourth quarter.

Foreign trade growth accelerated quarter by quarter

By quarter, China’s imports and exports rose 15.3% year-on-year in Q1, 18.3% in Q2 and further climbed to 22.3% in Q3.

Wang Jun said that viewed historically, the foreign trade growth for the first three quarters marks the fastest pace for the same period in nearly five years, with quarterly and monthly growth rates generally picking up. Internationally, the latest global statistics show that this growth rate ranks high among major economies, and China remains the world’s largest trader of goods.

In the first three quarters, China’s goods exports reached 23.2 trillion yuan, up 16.4% YoY. Q3 exports exceeded 8 trillion yuan for the first time, growing 22% year-on-year.

“The sound export growth is mainly attributable to China’s complete industrial chain system, the expansion of advanced manufacturing sectors, and markedly enhanced innovation capacity, competitiveness and comprehensive strength. China can respond precisely, rapidly and effectively to global production and consumption demand and deliver high-quality and stable supply,” Wang Jun stated.

Data shows China’s imports rose 22.3% YoY in the first three quarters. Since March, import growth has exceeded 20% for seven consecutive months, and imports in September surpassed 2 trillion yuan for the first time. Imports grew faster than exports.

Regarding the full-year outlook for foreign trade, Wang Jun commented that the international environment still abounds with uncertainties and unpredictable factors. Geopolitical conflicts continue to disrupt global economic and trade order, while trade protectionism and unilateralism are on the rise, bringing multiple challenges to foreign trade development. Nevertheless, the world economy still demonstrates resilience. Supported by China’s super-large market and complete industrial system, together with coordinated effects of existing and new policies, China’s foreign trade still has the foundation and conditions to maintain steady growth in the next stage.

Equipment manufacturing contributes nearly 90% of export increment

In the first three quarters, China’s equipment manufacturing sector played a prominent leading role, contributing nearly 90% of the export increment. Intermediate goods accounted for more than half of total exports, serving effectively as a “stable anchor” for global industrial and supply chains. Export products are shifting toward smart and green categories. Exports of integrated circuits jumped 99.1% YoY, while green products including electric vehicles, lithium batteries, and wind turbine generators and components rose by 72.3%, 36.4% and 22.4% respectively.

“Practice shows that as China’s advanced manufacturing sector expands, industrial upgrading and integrated development are accelerating, continuously injecting new impetus into foreign trade growth,” Wang Jun said.

Wang Jun held that the booming development of artificial intelligence has accelerated global investment in computing infrastructure, driving sustained rising demand for computing terminal equipment and intermediate manufacturing goods. Meanwhile, the operation of large-scale computing facilities has pushed up global demand for power equipment. Leveraging its complete industrial system and technological innovation capability, China provides solid support for the rising global demand for computing and power.

On the computing front, in the first three quarters, China’s integrated circuit exports surged 99.1% YoY; exports of computer parts and accessories rose 2.1 times; storage components such as solid-state drives increased 1.3 times, securing stable supply of intermediate goods for the global computing industrial chain. Exports of data processing equipment such as servers grew 7.2% YoY, supporting the construction of global computing infrastructure. In addition, Chinese terminal products including AI glasses and intelligent bionic robots keep entering the global market, enriching worldwide AI application scenarios.

On the power front, product exports saw broad-based growth in the first three quarters, covering three segments: power generation, transmission and energy storage.

• Power generation: Exports of photovoltaic products rose 10.3% YoY, and wind turbine generators and components climbed 22.4% YoY, continuously filling the global supply gap for clean energy.

• Power transmission: Exports of electric wires and cables grew 28.1% YoY, and transformers rose 22.5% YoY.

• Energy storage: Exports of various storage batteries increased 34.8% YoY, sold to more than 200 countries and regions worldwide.

Private enterprises remain the largest player in foreign trade

Statistics show that in the first three quarters, imports and exports by private enterprises reached 22.73 trillion yuan, up 19.1% YoY and accounting for 56.9% of total foreign trade volume, retaining their position as the largest foreign trade entity. Foreign-invested enterprises posted imports and exports of 11.69 trillion yuan, up 19% YoY. State-owned enterprises registered 5.46 trillion yuan of imports and exports, rising 17.8% YoY.

Wang Jun said the growth in both volume and quality of private enterprises’ foreign trade benefits from policy support. The Customs will continue implementing various policies to stabilize foreign trade, remain enterprise-demand-oriented, further deepen reforms, vigorously promote cross-border trade facilitation, foster a first-class port business environment, strengthen corporate credit cultivation, and accurately help all types of market entities stabilize markets and secure orders.

In the first three quarters, foreign-invested enterprises achieved imports and exports of 11.69 trillion yuan, up 19% YoY, hitting a record high for the same period. Foreign enterprises are actively seizing opportunities brought by China’s industrial upgrading and the development of new-quality productive forces, deeply integrating into China’s industrial and innovation chains, and continuing to expand investment and operations in China.

Wang Jun stated that restrictions on foreign investment access in the manufacturing sector have been fully lifted, and national treatment for foreign-invested enterprises is consistently implemented. He believes more foreign firms will commit to long-term development in China, achieve mutual growth with Chinese enterprises, and share “China Opportunity 2.0”.

Source: Shanghai Securities News