EconoScope | Innovation drives Shenzhen foreign trade to hit new heights

(ECNS) -- China's import and export volume hit a record high in the first seven months of this year, with Shenzhen leading growth among mainland cities, according to data released by the General Administration of Customs on Wednesday.

Statistics from Shenzhen Customs show that in the first half of the year, its import and export volume totaled 2.2 trillion yuan (about $305.56 billion), up 31.7 percent year-on-year, setting a historical record for the same period. Exports reached 1.41 trillion yuan, growing by 34.9 percent, while imports amounted to 792.45 billion yuan, an increase of 26.5 percent.

Shenzhen economic growth is increasingly relying on technological innovation, said Qu Jian, vice president of the Shenzhen-based think tank China Development Institute.

While its traditional exports continue to grow steadily, the three major tech-intensive green products — new energy vehicles, lithium batteries, and photovoltaic products — have emerged as new forces.

Data shows that the traditional three export products -- mobile phones, computers, and household appliances totaled 168.45 billion yuan in the first half of the year, an increase of 18.9 percent, while new energy vehicles and photovoltaic products saw exports of 12.87 billion yuan and 2.48 billion yuan, respectively, with growth rates of 51.7 percent and 81.6 percent, forming the backbone of Shenzhen’s foreign trade.

Shenzhen enterprises also break through technological barriers and increase the added value of products. At the same time, they cultivate and develop new forms and models of cross-border e-commerce, injecting more vitality into the growth of foreign trade.

“Private enterprises have always been a crucial force in Shenzhen’s technological innovation,” Qu noted.

Shenzhen’s private enterprise import and export volume reached 1.58 trillion yuan, an increase of 48.3 percent, accounting for 72 percent of the city’s total import and export value. Foreign-invested enterprises’ import and export volume reached 516.32 billion yuan, an increase of 3.7 percent, accounting for 23.5 percent.

Shenzhen enterprises have intensified efforts to expand into emerging markets in Southeast Asia and Latin America.

In the first half of the year, trade with ASEAN countries reached 385.66 billion yuan, a growth of 51.2 percent. Additionally, trade with Latin America totaled 125.17 billion yuan, up 41.7 percent, with trade with Mexico and Brazil growing by 41.6 percent and 72.3 percent, respectively.

The city’s strong foreign trade performance is also attributed to its solid manufacturing base and well-developed supply chain system. As a globally recognized manufacturing hub, Shenzhen boasts a comprehensive upstream and downstream industrial chain.

By 2025, the city aims to form four one-trillion-yuan-level, four 500-billion-yuan-level, and several 100-billion-yuan-level industrial clusters, establishing itself as a leading global center for advanced manufacturing.