Economic Watch: China's foreign trade reaches new high in H1

An aerial drone photo taken on June 26, 2024 shows freight ships docked at the container terminal of Lianyungang Port, east China's Jiangsu Province. (Xinhua/Ji Chunpeng)

BEIJING, July 12 (Xinhua) -- China's foreign trade reached a new high in the first half (H1) of this year, providing additional momentum for economic recovery, official data showed Friday.

The goods trade volume expanded 6.1 percent year on year to 21.17 trillion yuan (about 2.97 trillion U.S. dollars) in the January-June period, with exports rising 6.9 percent and imports climbing 5.2 percent, according to the General Administration of Customs (GAC).

Looking at the figures, analysts believe that the positive trend in foreign trade has been further solidified.

In the second quarter, the imports and exports in total gained 7.4 percent compared to a year earlier, which was notably higher than the 4.9 percent increase in the first quarter of this year and the 1.7 percent rise in the fourth quarter of last year.

The GAC said that the foreign trade in goods has continued improvements in both quality and quantity, adding to the upward trend of the economy.

ASEAN remained China's largest trading partner, with bilateral trade volume reaching 3.36 trillion yuan in H1, up 10.5 percent from a year ago, accounting for 15.9 percent of the country's total foreign trade. It was followed by the European Union with trade volume standing at 2.72 trillion yuan, the United States at 2.29 trillion yuan, and the Republic of Korea at 1.13 trillion yuan.

China's trade with countries participating in the Belt and Road Initiative maintained vibrant growth, with the trade volume up 7.2 percent to 10.03 trillion yuan in the first six months.

"In general, China's trade in goods in H1 of the year showed strong resilience and vitality, with exports maintaining a steady and progressive trend," said Chen Hongna, an associate researcher at the Development Research Center of the State Council.

Mechanical and electrical products continued to dominate China's exports during the period, accounting for nearly 60 percent of the total.

Specifically, exports of automatic data processing equipment and components rose 10.3 percent year on year in H1, integrated circuits increased by 25.6 percent and automobiles by 22.2 percent.

Looking ahead, analysts anticipate that China's foreign trade will maintain its positive momentum in the coming months.

While the demand from developed countries will likely decline, emerging economies including ASEAN, Latin America and BRICS nations will be able to fill the gap, Yu Xiangrong, chief economist of Citigroup China said, noting that the country's export growth is expected to remain steady.

Despite external uncertainties, foreign trade will exhibit better quality and stable quantity this year, with new trade drivers taking shape at a rapid pace, Chen said.

China's continued technological advances and complete supply and industrial chains have bolstered its manufacturing strength and provided exporters with advantages in international markets, according to analysts.

With trade protectionism on the rise, experts have also called for close monitoring of its impact and emphasized the need for greater efforts to expand trade in intermediate goods and promote the digital economy.