Electric vehicles, lithium-ion, solar batteries become new drivers of China's foreign trade

Apparel, home appliances and furniture were once known as the "three major ones" that drove China's export growth. Today, the new "three major ones,” namely, electric vehicles, lithium-ion batteries and solar batteries, have become new drivers of the country's foreign trade.

The total export value of China's new "three major ones" soared 61.6 percent year on year in the first half of 2023, according to the General Administration of Customs. Together, they contributed 1.8 percentage points to the overall export growth during the same period.

An employee works at Blue Carbon Technology Inc. in Rizhao city, east China's Shandong Province. (Photo/Shi Wanli)

In Rizhao city, east China's Shandong Province, Blue Carbon Technology Inc. assembles solar cells, produces lithium-ion batteries and others. The company has retail stores in over 100 countries and regions, including Mexico, the U.S., and Saudi Arabia. In the first five months of this year, exports of the company's products including lithium-ion batteries exceeded 300 million yuan ($41.6 million).

Between January and May this year, total exports of electric vehicles, lithium-ion batteries and solar batteries in Changzhou city, east China's Jiangsu Province surged 25.3 percent. During the same period, Changzhou customs handled 1,149 batches of lithium-ion batteries for export, up 37.8 percent year on year.

According to statistics from Nanjing customs in Nanjing, capital of Jiangsu, exports of electric vehicles, lithium-ion batteries and solar batteries in the province grew 541.6 percent, 64.3 percent and 8 percent to reach 3.9 billion yuan, 39.15 billion yuan and 44.84 billion yuan, respectively, in the first five months of this year.

In addition to Chinese companies' production and innovation, the rapid growth in exports of the new "three major ones" is also inseparable from favorable policies and services.

"Lithium-ion batteries are regulated as dangerous goods. We need to apply to Rizhao customs for a certificate for the packaging of dangerous goods before exporting them. But no local enterprise is eligible for the packaging of dangerous goods. Rizhao customs contacted an eligible enterprise outside our company, providing security for the export of our products," said Liu Jing, marketing manager of Blue Carbon Technology Inc.

Chinese solar photovoltaic (PV) maker Trina Solar, based in Changzhou, can use an international trade "single-window system," a trade facilitation policy that enables faster and easier cargo clearance, and independently issue declarations of origin. From January to May of this year, Changzhou customs issued 165 certificates of origin for goods worth $62 million to the company. In the first quarter, Trina Solar's exports surged by around 50 percent year on year.

"We pay close attention to technical trade measures and influences in the PV industry abroad and explain policies and information about export markets at the earliest time to help relevant enterprises avoid trade risks," said Gu Gaolang, chief of Changzhou customs.

Customs officers learn about the production of photovoltaic panels at a new energy company in Yangzhou city, east China's Jiangsu Province. (Photo/Hu Wenjing)

Not long ago, Jiangsu introduced measures to stabilize the scale and optimize the structure of foreign trade, urged the increase in exports of autos and green products such as solar batteries and lithium-ion batteries, and promoted the development of green trade.

The rapid growth in exports of the new "three major ones" is a symbol of China's continuously improving foreign trade structure, said Xu Yanjun, chief of Linyi customs in Linyi city, Shandong.

Xu added that Linyi customs will continue to improve customs supervision services and roll out favorable policies to boost the high-quality development of foreign trade.

The continued growth in exports of the new "three major ones" reflects China’s constantly accelerating pace of moving the manufacturing sector toward higher-end, smarter, and greener production.

China has formed scale advantages in electric vehicles to some extent, with the components and core technologies, including on-board batteries and operating systems, being self-developed and controllable, said Zhang Yongsheng, who is in charge of China leading electric vehicle manufacturer BYD's Changzhou project.

"Thanks to advantages in production costs, China's electric vehicles are competitively priced in the world, which is conducive to further consolidating international competitiveness," Zhang added.

Driven by BYD's Changzhou project, exports of the city's auto spare parts and lithium-ion batteries soared 20.9 percent and 64.2 percent, respectively, in the first five months of this year.

"The new 'three major ones' demonstrate the effective upgrade in quality and the appropriate expansion in quantity in China's exports," said Xin Jianmin, chief of Nanjing customs.

Suzhou city, Jiangsu will step up efforts to introduce and cultivate talent to inject new vitality into the development of the industries of electric vehicles, lithium-ion batteries and solar batteries.

Zaozhuang city, Shandong released implementation guidelines on accelerating the development of the lithium-ion battery industry, aiming to see that the output value of the sector will reach 300 billion yuan by 2035. Home to 38 research platforms for lithium-ion batteries, the city has obtained 698 patents related to lithium-ion batteries.

"The new 'three major ones' have become important new growth points of China's exports, providing new drivers for the transformation and upgrading of foreign trade," said Shen Yang, chief of Qingdao customs in Shandong.

Shen said Qingdao customs will further provide facilitation measures, promote the export of high-value-added, high-tech, green and low-carbon products, including the new "three major ones," and improve new competitive advantages in foreign trade.