In the first ten months of 2024, China's foreign trade exhibited notable growth, with the total value reaching RMB 36.02 trillion (approximately US$5.05 trillion), marking a 5.2% year-on-year increase. Exports rose by 6.7% to RMB 20.8 trillion (US$2.89 trillion), while imports grew by 3.2% to RMB 15.22 trillion (US$2.09 trillion). The trade surplus expanded by 17.6%, amounting to RMB 5.58 trillion (US$770 billion).
October 2024 Trade Performance
In October alone, the total import and export value was RMB 3.7 trillion (US$520 billion), a 4.6% year-on-year increase. Exports surged by 11.2% to RMB 2.19 trillion (US$305 billion), while imports declined by 3.7% to RMB 1.51 trillion (US$210 billion). The trade surplus for the month stood at RMB 679.1 billion (US$95 billion).
Factors Influencing Export Growth
Several elements contributed to the robust export performance in October:
Resolution of Short-Term Disruptions: Earlier challenges such as extreme weather and global shipping disruptions had lessened, facilitating smoother export activities.
Lower Comparison Base: The previous year's exports in October had decreased by 7.5%, providing a lower base for comparison.
Growth in Cross-Border E-Commerce: Preliminary data indicated a 15.2% year-on-year increase in cross-border e-commerce exports during the first three quarters, outpacing overall export growth by 9 percentage points.
Resilient External Demand: Strong economic trends in key markets, notably the United States, supported sustained demand for Chinese exports.
Trade with Major Partners
China's trade relationships with key partners showed significant activity:
ASEAN: Total trade reached RMB 5.67 trillion, a 8.8% increase, with exports up by 12.5% and imports by 3.8%.
European Union: Trade amounted to RMB 4.64 trillion, growing by 1.2%, with exports increasing by 3.5% and imports decreasing by 2.9%.
United States: Trade totaled RMB 4.01 trillion, a 4.4% rise, with exports up by 4.9% and imports by 2.9%.
South Korea: Trade was RMB 1.91 trillion, a 6.7% increase, with exports slightly down by 0.8% and imports up by 13.8%.
Belt and Road Countries: Trade with these nations reached RMB 16.94 trillion, a 6.2% increase, with exports growing by 8.0% and imports by 3.9%.
Trade by Enterprise Type
Private enterprises played a pivotal role, accounting for 52.4% of total trade, with a value of RMB 18.87 trillion, marking a 10.3% increase. State-owned enterprises contributed RMB 5.95 trillion, a 0.7% rise, while foreign-invested enterprises saw a slight decline of 0.1%, totaling RMB 11.2 trillion.
Trade by Product Category
Exports of mechanical and electrical products grew by 8.8%, making up 59.1% of total exports. Notably, vehicle exports surged by nearly 40%, with smartphones and ship vessels also experiencing significant increases.
Outlook for 2025
Looking ahead, China's trade dynamics are expected to be influenced by several factors:
Global Economic Conditions: The health of the global economy will play a crucial role in shaping demand for Chinese exports.
Trade Policies: Potential changes in trade policies, including tariffs and trade agreements, could impact trade flows.
Domestic Economic Policies: China's internal economic strategies, such as fiscal policies and efforts to boost domestic consumption, will also affect trade performance.
Overall, while challenges persist, China's trade sector has demonstrated resilience, with private enterprises and emerging markets contributing significantly to its growth trajectory.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.
Talk to an expert
Schedule a 30-mins complimentary, no-obligation call to see how Woodburn can help you. Book a call with our Head of Business Advisory - Kristina Koehler-Coluccia.
Topics we can advise on include:
Company Registration
Cloud Accounting & Financial Reporting
Cloud Payroll Services
Tax & Audit Services
Recruitment
Employer-of-Record
Visa Application
Trademark Registration
Switch to Woodburn
Partner with Woodburn (cross referral)
Our calls are automatically scheduled via Zoom - or via Teams, WeChat or WhatsApp upon direct request.
Our advisory calls are available from Monday-Friday from 8am to 5pm CEST and Wednesday until 9pm CEST.