China's foreign trade, particularly exports of mechanical and electrical products, along with its resilient supply chains, will be pivotal in curbing global inflation and driving the green transformation of many countries in 2025, market analysts and exporters said on Friday.
Although external risks and challenges, including increasing trade barriers and geopolitical impacts, are growing, they said there are still ample opportunities for the growth of China's foreign trade, and global trade continues to recover.
China's foreign trade grew 4.9 percent year-on-year to 39.79 trillion yuan ($5.43 trillion) in the January-November period of 2024, while exports increased 6.7 percent on a yearly basis to 23.04 trillion yuan, statistics from the General Administration of Customs showed.
According to the latest data released by the World Trade Organization, China's export market share was 14.5 percent in the first three quarters last year, an increase of 0.3 percentage points compared to the same period in 2023. The country is expected to remain the world's largest goods trading nation for the eighth consecutive year in 2024.
China's foreign trade is not only supported by a robust industrial foundation and a well-developed supply chain, but has also been strengthened by overcoming various difficulties and challenges, and enhancing its resilience and capabilities, said Liang Ming, director of the Institute of International Trade, which is part of the Chinese Academy of International Trade and Economic Cooperation.
With its large-scale production capabilities and most comprehensive range of industrial categories based on United Nations' standards, China is able to provide products — from liquefied natural gas carriers to daily necessities — at affordable prices to the global market. This benefits both foreign consumers and businesses, helping to mitigate inflationary pressures in sectors dependent on these goods, said Liang.
To maintain competitiveness, Chinese exporters have been accelerating their "going global" pace and investing heavily in green technologies, enhancing local manufacturing capacity in overseas markets, and generating new growth points, said Chen Bin, deputy director of the expert committee at the Beijing-based China Machinery Industry Federation.
The growth of China's new energy industry is closely aligned with significant anticipated demand in the sector in many parts of the world, and the country will continue to lead the global green and low-carbon transformation, said Xu Wei, head of the macroeconomic research department at the Development Research Center of the State Council.
The new energy sector focuses on developing and utilizing alternative energy sources that are more sustainable and environmentally friendly than traditional fossil fuels. This includes electric vehicles, solar and wind power, energy storage and hydrogen energy.
For instance, global wind and photovoltaic power generation costs have dropped by over 60 percent and 80 percent, respectively, over the past decade, with a significant portion of this reduction attributed to China's contribution, according to a report released by the Abu Dhabi-based International Renewable Energy Agency.
Initially known for exporting low-cost intermediate goods, China is now increasingly recognized for its high-value, technologically advanced products as it moves up the value chain, said Denis Depoux, global managing director at German management consultancy Roland Berger.
Huzhou Sany Loader Co Ltd, a Huzhou, Zhejiang province-based equipment manufacturer, has been heading in that direction. The company began to export electric-powered loaders to many countries, such as Indonesia, Malaysia and Brazil, since 2023. The average price of each unit is around 1 million yuan, which is twice the price of traditional diesel loaders.
"The operating cost of electric loaders is about one-third to one-quarter that of diesel loaders, bringing significant savings for users," said Gao Pengfei, head of the company's research and development unit, adding that the company will prioritize the export of electrified products in the coming years.
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