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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 35% of its GDP in 2020 (World Bank, 2022). China's main exports include Electrical and electronic equipment (27%), machinery, nuclear reactors, boilers (17%), furniture, lighting signs, prefabricated buildings (4,2%), plastics (3,7%), optical, photo, technical, medical apparatus (3,1%), vehicles other than railway, tramway (2.9%), other made textile articles, sets, worn clothing (2,9%). On the other hand, the country mainly imports Electrical and electronic equipment (27%), Mineral fuels, oils, distillation products (13%), machinery, nuclear reactors, boilers (9,3%), iron ores slag and ash (8.8%), optical, photo, technical, medical apparatus (4,8%), vehicles other than railway, tramway (3.6%). The International Monetary Fund (IMF) is forecasting a rebound of 5.7% in the volume of exports of goods and services of this country in 2022, after an increase of 4% in 2020; and an increase of only 3.2% of its imports in 2022 after a jump of 10.9% in 2021 and 0% in 2020 (IMF Country Report, 2021).
The country's main partners include the United States, Japan, South Korea, Vietnam, Australia and Germany. Tensions in the U.S. - China economic relationship have heightened business uncertainties in 2020 and 2021, given that the US is the country's main trade partner (China's 2020 trade surplus with the U.S. was USD 255.5 billion after an all-time record of 323.3 billion in 2018). 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 2021, exports of goods in 2020 were USD 2,590.2 billion and imports USD 2,057.2 billion, while exports and imports of services in 2020 reached USD 278 billion and USD 377.5 billion respectively. China reported an overall 5% increase in exports and 8% decrease in imports for 2020. According to the World Bank data of 2021, China's trade surplus for goods stood at USD 535,37 billion in 2020, an increase from USD 425.2 billion in 2019. The overall trade balance (including services) was USD 369.67 billion in 2020, from 131.84 billion the previous year.
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 available data
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 available data
Foreign Trade Forecasts | 2022 | 2023 (e) | 2024 (e) | 2025 (e) | 2026 (e) |
---|---|---|---|---|---|
Volume of exports of goods and services (Annual % change) | 2.2 | 1.9 | 3.4 | 3.8 | 3.8 |
Volume of imports of goods and services (Annual % change) | -2.4 | 1.7 | 3.9 | 4.8 | 4.8 |
Source: IMF, World Economic Outlook ; Latest available data
Note: (e) Estimated Data
Main Customers (% of Exports) |
2021 |
---|---|
United States | 17.2% |
Hong Kong SAR, China | 10.4% |
Japan | 4.9% |
South Korea | 4.4% |
Vietnam | 4.1% |
See More Countries | 59.0% |
Main Suppliers (% of Imports) |
2021 |
---|---|
South Korea | 8.0% |
Japan | 7.7% |
United States | 6.7% |
Australia | 6.1% |
China | 5.8% |
See More Countries | 65.7% |
Source: Comtrade, last available data
Source: Comtrade, last available data
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 Available Data
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 available data.
Find out all the exchange rates daily on our service Currency converter.
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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.
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Latest update: January 2023