China Foreign Trade Hits Record Highs in Q1 2024

According to official data provided by the General Administration of Customs (GAC) on Friday, China's overseas commerce in products reached unprecedented heights in the first quarter of 2024, setting new records in scale and growth rate.

China's overall import and export of goods increased by 5% year over year in yuan terms from January to March, totaling 10.17 trillion yuan (about 1.43 trillion US dollars).

The second-largest economy in the world, China, had a 4.9 percent year-over-year gain in exports to 5.74 trillion yuan, while imports increased by 5% to 4.43 trillion yuan.

According to GAC deputy head Wang Lingjun, during a press conference, this is the first time in history that China's foreign trade scale has exceeded 10 trillion yuan during the same period, with the growth rate reaching a six-quarter high.

Remarkably, China's trade growth rate above that of the other BRICS countries and other countries taking part in the Belt and Road Initiative (BRI). Trade with BRI partner nations totaled 4.82 trillion yuan, representing a 5.5% increase and 47.4% of China's overall trade volume.

Double-digit increase was seen in trade with Latin America and the five Central Asian nations, while encouraging recovery was seen in trade with traditional markets including the US and Japan, where import and export declines were less pronounced than in 2023.

Structurally, China's export portfolio demonstrated strength in the machinery and electronics sector, as well as labor-intensive products. Meanwhile, imports of bulk commodities and consumer goods expanded steadily, indicating healthy domestic demand growth.

Despite facing heightened tests amid profound shifts in the international environment, China's foreign trade sector remains resilient. Wang emphasized that the fundamental strength of China's economy continues to improve, supported by a solid foundation and sustained improvement in foreign trade.

Wang was upbeat about the future, predicting that in the second quarter of 2024, China's imports and exports would continue to rise. Officials and analysts anticipate China's economic fundamentals and supportive macroeconomic policies to propel future growth, with an annual target GDP growth rate of about 5%.

The improvement in the purchasing managers' index (PMI) for both the manufacturing and services sectors is only one of several good signs of the economy that have been seen since March, along with the upward momentum in China's international trade.

Shayne Heffernan