Foreign trade hits new high in first half

China's total goods exports and imports reached a new high in the first half of the year despite challenges such as escalating trade protectionism and intensifying geopolitical tensions, signaling an encouraging improvement in demand both at home and overseas, analysts said.

The stronger-than-expected performance suggests that an array of supportive policy measures over the past months have helped anchor investor and consumer expectations and strengthen supply chain resilience and competitiveness, they added, cautioning that the road ahead may remain bumpy due to fresh trade restrictions tipped by major economies.

The goods trade volume expanded 6.1 percent year-on-year to 21.17 trillion yuan ($2.91 trillion) in the January-June period, data from the General Administration of Customs showed on Friday. Exports rose 6.9 percent, while imports climbed 5.2 percent.

The accelerating growth of import and export activities, with a 7.4 percent increase in the second quarter, outpaced the growth rates of both the first quarter, and the fourth quarter of last year by 2.5 and 5.7 percentage points, respectively, further solidifying the positive trend in China's foreign trade, the administration said.

An increased appetite for Chinese products globally has fostered an enabling climate for Chinese businesses to expand their market share and boost export volumes, said Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges.

In particular, the country's ongoing efforts to move up the global value chains have contributed to the robust export growth observed in mechanical and electrical products, as well as high-tech goods, Zhang said, adding that the emphasis to diversify export destinations and tap into emerging markets has helped create a more resilient trade network.

During the period, the Association of Southeast Asian Nations remained China's largest trade partner. China's trade with ASEAN economies climbed 10.5 percent year-on-year to 3.36 trillion yuan, accounting for 15.9 percent of the country's total trade value, according to the official data.

China's trade with the European Union — the nation's second-largest trade partner — dipped 0.7 percent from a year earlier, while the country's trade with the United States rose 2.9 percent, the Customs said.

Growth in imports implies reviving domestic investment and consumer demand, said Wen Bin, chief economist at China Minsheng Bank, stressing that the positive import trend, along with the export upturn, will better support progress toward meeting the government's economic growth target for this year of around 5 percent.

However, China's future exports might still face mounting pressures as global trade protectionism intensifies and amid trade tensions between China and the US, experts said.

Last week, the EU slapped extra provisional duties of up to 37.6 percent on Chinese electric vehicle imports, following Washington's decision in May to hike tariffs on a range of Chinese imports, including quadrupling duties on Chinese EVs to 100 percent.

Turkiye also announced in early June it would impose a 40 percent additional tariff on conventional and hybrid passenger vehicles from China.

That said, China's shift toward expanding into markets beyond these traditional trading partners and gradually reducing its overall reliance on foreign trade will help mitigate risks arising from such trade protectionism, said Liang Ming, director of the Institute of International Trade, which is part of the Chinese Academy of International Trade and Economic Cooperation.