China’s exports hit record highs again

In the first seven months of this year, China’s foreign trade in goods grew 6.2 percent from a year earlier to reach 24.83 trillion yuan (3.46 trillion U.S. dollars), customs data showed on Wednesday.

This result is driven by the country’s industrial strength, strong external demand and trade diversification, according to the Global Times.

These figures underscore the continued momentum of the world’s second-largest economy, even in the face of internal and external challenges. The trade sector is expected to accelerate in the second half of the year, contributing to economic growth and helping China achieve its 5% GDP target for 2024.

China’s robust trade growth defies protectionist measures and tariffs imposed by Western countries, highlighting the resilience and competitiveness of the world’s largest industrial power. Analysts highlight China’s central role as a stabilizer and driver of the global supply chain.

Between January and July, China’s exports increased by 6.7%, while imports rose by 5.4%, surpassing the 6.1% growth recorded in the first half of the year.

“Since the beginning of the year, China’s economy has remained stable with continuous progress, and foreign trade has continued to improve,” the General Administration of Customs (GAC) said.

In July, foreign trade grew by 6.5% year-on-year, with exports and imports increasing by 6.5% and 6.6% respectively. The growth rate of imports and exports has remained above 5% for four consecutive months.

“The 6.5 percent growth in July indicates that trade has maintained robust expansion. Such positive data is promising for trade development in the second half of the year,” said Tian Yun, a Beijing-based economist.

In the second quarter, China’s GDP grew 4.7% from a year earlier. Based on July trade data, economists are projecting third-quarter GDP growth of about 5%.

The positive momentum in trade in July is attributed to factors such as rising external demand and the impending global interest rate cut cycle. The Paris 2024 Olympic Games also boosted demand for “Made in China” products.

In August, the Bank of England announced an interest rate cut, its first in four years. Observers expect more economies to follow suit, which will boost external demand and further benefit China’s foreign trade.

In the first seven months, ASEAN remained China’s largest trading partner, with bilateral trade growing by 10.5 percent to 3.92 trillion yuan, accounting for 15.8 percent of China’s total foreign trade volume. The EU and the US were the second and third largest trading partners, with growth of 0.4 percent and 4.1 percent respectively.

China’s exports of electromechanical products totaled 8.41 trillion yuan, up 8.3 percent, accounting for 59 percent of total exports. Specifically, exports of integrated circuits increased by 25.8 percent and those of motor vehicles by 20.7 percent.