China's H1 foreign trade data shows 'improved quality, steady quantity'

Editor's note: Zhu Fangfei is director of the research department at the Institute for Public Policy of Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

China's imports and exports of goods totaled 21.17 trillion yuan ($2.9 trillion) in the first half of 2024, a year-on-year increase of 6.1 percent. This marks the first time the scale of foreign trade has exceeded 21 trillion yuan for this period, setting a new record. 

In the first half of this year, China's foreign trade performed brilliantly, showcasing strong resilience and vitality. This is primarily manifested in the following five aspects:

1. Monthly trade volume remains high

Since the beginning of 2024, China has maintained a high monthly trade volume. 

Since March, monthly trade volume has consistently stayed above 3.5 trillion yuan. In particular, May saw a trade volume of 4.06 trillion yuan, far higher than the monthly average for 2021, 2022 and 2023.

2. Export scale surpasses all previous records for the period

In the first half of the year, China's import and export scale exceeded 21 trillion yuan for the first time in history for the same period. 

The growth rate of imports and exports grew on a quarterly basis. The 7.4-percent rise in the second quarter was 2.5 percentage points and 5.7 percentage points higher than in the first and the fourth quarters of last year, respectively. The growth momentum of foreign trade was further consolidated.

3. Export continues to recover and improve

In June, the year-on-year growth rate of China's export value, measured in U.S. dollars, increased by 1.0 percentage point to 8.6 percent from the previous month, beating market expectations. 

For the first half of the year, the cumulative year-on-year growth rate of China's export value reached 3.6 percent, notably better than the -3.2 percent growth rate in the first half of last year. The demand from the overseas market played a vital role in boosting the domestic economy.

4. China expands trade with major trade partners

In the first half of the year, ASEAN stood as China's largest trading partner. Their total trade value reached 3.36 trillion yuan, up 10.5 percent, accounting for 15.9 percent of China's total foreign trade value. 

China's total trade value with the United States and South Korea was 2.29 trillion yuan and 1.13 trillion yuan, respectively, with increases of 2.9 percent and 7.6 percent. 

During the same period, China's trade with Belt and Road participating countries totaled 10.03 trillion yuan, growing by 7.2 percent.

5. Private, foreign-invested and state-owned enterprises all witness growth in imports and exports

In the first half of the year, imports and exports by private enterprises rose by 11.2 percent to 11.64 trillion yuan, comprising 55 percent of China's total foreign trade value, up by 2.5 percentage points from the same period last year. 

During the same period, foreign-invested enterprises registered imports and exports of 6.17 trillion yuan, an increase of 0.2 percent, accounting for 29.1 percent of the total foreign trade value. State-owned enterprises' imports and exports amounted to 3.31 trillion yuan, a growth of 1.2 percent, contributing 15.6 percent to the total foreign trade value.

Since the beginning of 2024, new foreign trade orders have steadily increased for China. Foreign trade exhibits a positive overall trend. Export data has outperformed market expectations, and enterprises are confident about prospects in foreign trade. 

According to a survey by the China Council for the Promotion of International Trade in May this year, 81.6 percent of foreign trade enterprises predicted that exports would improve or remain stable in the first half of the year, and 65.1 percent of the surveyed enterprises reported that new orders increased or remained stable compared to the previous quarter. 

Currently, China is solidifying the foundation for its foreign trade industry, with the factor endowment and innovation capabilities of foreign trade on the rise, and new momentum and advantages in foreign trade continuously emerging.

The country is pursuing a series of innovative development measures and new business forms for foreign trade, which are playing a critical role in helping foreign trade enterprises stabilize orders and expand markets.

These measures include accelerating the negotiation process of multilateral trade agreements to foster a favorable environment for exports, and introducing a series of policies to encourage the cross-border e-commerce and propel the building of free trade pilot zones.

Favorable factors for foreign trade development are continuously accumulating, and the goal of "improved quality, steady quantity" in foreign trade is expected to be achieved in 2024.