In this page: Foreign Trade in Figures | Trade Compliance | Standards
Thanks to its enormous trade surplus over the past few years, China has become the world's largest exporter and ranks second among the world’s largest importers. Despite its strict policies, the country is fairly open to foreign trade, which represented 37% of its GDP in 2022 (World Bank, 2023). China's main exports include Electrical and electronic equipment (27%), machinery, nuclear reactors, boilers (16%), furniture, lighting signs, prefabricated buildings (4,1%), plastics (3,9%), toys (3%), optical, photo, technical, medical apparatus (2,9%), vehicles other than railway, tramway (3.6%), articles of iron and steel (2,8%). On the other hand, the country mainly imports Electrical and electronic equipment (25%), Mineral fuels, oils, distillation products (15%), machinery, nuclear reactors, boilers (8,6%), iron ores slag and ash (10%), optical, photo, technical, medical apparatus (4,1%), vehicles other than railway, tramway (3.2%).
The country's main partners include the United States, Hong Kong, Japan, South Korea, Vietnam, Australia and Germany. Tensions in the U.S. - China economic relationship have heightened business uncertainties since 2020, given that the US is the country's main trade partner. China's trade surplus dropped to USD 78.01 billion in December 2022 from a revised USD 93.21 billion in the same month the prior year and compared to market forecasts of USD 76.2 billion. The data came in amid weakening global and domestic demand. Exports plunged 9.9%, the largest decline in nearly three years, while imports fell at a softer 7.5%, the third straight month of decrease. Considering 2022 full year, the country's trade surplus widened 31 percent year-on-year to USD 876.91 billion, the highest since records started in 1950, as exports rose 7% and imports increased by only 1%. (China General Administration of Customs, 2023).
Similar tensions were at play with Australia although with less consequences for China. However, the Chinese government has been adopting looser economic policies to mitigate mounting risks to future growth. On the 15th of November 2020 China has signed the Regional Comprehensive Economic Partnership (RCEP) with 14 other Indo-Pacific countries. This free trade agreement is the largest trade deal in history, covering 30 per cent of the global economy. It includes the Association of Southeast Asian Nations (ASEAN : Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and ASEAN’s free trade agreement partners (Australia, China, India, Japan, New Zealand and Republic of Korea). The RCEP covers goods, services, investment, economic and technical cooperation. It also creates new rules for electronic commerce, intellectual property, government procurement, competition, and small and medium sized enterprises.
Trade has become an increasingly important part of China’s overall economy, and it has been a significant tool used for economic modernisation. As reported by WTO in 2023, exports of goods in 2021 were USD 3,363.8 billion and imports USD 2,688.6 billion, while exports and imports of services in 2021 reached USD 390.6 billion and USD 438 billion respectively. China reported an overall 40% increase in exports and 16% decrease in imports for 2021.
Foreign Trade Values | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 1,843,793 | 2,135,748 | 2,078,386 | 2,057,217 | 2,688,634 |
Exports of Goods (million USD) | 2,263,345 | 2,486,695 | 2,499,457 | 2,590,221 | 3,363,835 |
Imports of Services (million USD) | 464,133 | 520,683 | 496,967 | 377,528 | 441,312 |
Exports of Services (million USD) | 226,389 | 269,697 | 281,651 | 278,084 | 392,198 |
Source: World Trade Organisation (WTO), Latest data available.
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Foreign Trade (in % of GDP) | 37.6 | 37.6 | 35.9 | 34.8 | 37.5 |
Trade Balance (million USD) | 475,941 | 380,074 | 392,993 | 511,103 | 562,724 |
Trade Balance (Including Service) (million USD) | 217,010 | 87,905 | 131,844 | 358,573 | 462,808 |
Imports of Goods and Services (in % of GDP) | 17.9 | 18.5 | 17.5 | 16.2 | 17.4 |
Exports of Goods and Services (in % of GDP) | 19.7 | 19.1 | 18.4 | 18.6 | 20.0 |
Source: World Bank, Latest data available.
Foreign Trade Forecasts | 2022 | 2023 (e) | 2024 (e) | 2025 (e) | 2026 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | -1.3 | -1.6 | 2.3 | 3.0 | 3.0 |
Volume of imports of goods and services (Annual % change) | -4.1 | 2.3 | 5.4 | 4.0 | 3.9 |
Source: IMF, World Economic Outlook, Latest data available.
Note: (e) Estimated Data
Main Customers (% of Exports) |
2022 |
---|---|
United States | 16.2% |
Hong Kong SAR, China | 8.3% |
Japan | 4.8% |
South Korea | 4.5% |
Vietnam | 4.1% |
See More Countries | 62.1% |
Main Suppliers (% of Imports) |
2022 |
---|---|
South Korea | 7.4% |
Japan | 6.8% |
United States | 6.6% |
Australia | 5.2% |
China | 4.5% |
See More Countries | 69.5% |
Source: UN Comtrade Database, Latest data available.
Source: UN Comtrade Database, Latest data available.
To go further, check out our service Import export flows.
208.0 bn USD of services exported in 2020 | |
---|---|
33.58% | |
27.25% | |
18.74% | |
6.06% | |
4.78% | |
4.13% | |
2.33% | |
1.44% | |
1.21% | |
0.49% |
377.6 bn USD of services imported in 2020 | |
---|---|
34.71% | |
25.08% | |
13.33% | |
10.03% | |
8.62% | |
3.29% | |
2.14% | |
1.06% | |
0.94% | |
0.80% |
Source: United Nations Statistics Division, Latest data available.
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Chinese Yuan (Renminbi) (CNY) - Average Annual Exchange Rate For 1 EUR | 7.07 | 7.63 | 7.81 | 7.75 | 7.88 |
Source: World Bank, Latest data available.
Find out all the exchange rates daily on our service Currency converter.
To go further, check out our service Shipping documents.
More than half of value imports to China are subject to import licenses. Initial authorisation is issued by various organisations (according to the product), but the final delivery is subject to acceptance by the MOFTEC. To obtain these authorisations, the importer must have exact foreign exchange reserves and justify the necessity to import. Delivery of licenses often depends on the sphere of activity, which may be encouraged, allowed, restricted or simply prohibited, according to the investments regulation promulgated by China. In any case, it is imperative to have solid relations within the Chinese Administration for obtaining these licenses.
Many goods imported into China are subject to inspection. In order to ensure conformity with Chinese customs standards, certain products- textiles, in particular- are subject to inspection prior to arrival in China. Other products can undergo inspection at the port of entry.
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest update: September 2023