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CHINA TRADE

China is the world’s trade powerhouse, with exports totalling an estimated $3.5 trillion and a trade surplus of over $1.2 trillion in 2025.  China’s share of global trade is 8.2% and is growing at a remarkable rate of 5.3% despite trade protectionism, restrictions and massive tariffs imposed by US, Western Europe and their allies on China exports.
 

Despite the challenges of plunging China-US trade, rising geopolitical tensions, tariff wars to weak global demand and a rising RMB - the record-breaking trade figures not only offers a window gauging into the strong resilience, adaptability and competitiveness of China’s foreign trade engine, but also underscores the country's irreplaceable role as both locomotive and stabilizer of the global supply chain.  China's foreign trade sector is truly remarkable.

Focussing on innovation, technology and high value driven manufacturing, advanced technology products now make up more than 48% of China’s total export and high technology products as a share of China’s export is expected to dominate the rest of the world.

China's high-tech exports have been gaining momentum, a trend that is in line with the country's industrial upgrading.  Many milestones were achieved last year.  China's exports of high-tech products climbed 13.2 percent year-on-year to reach $0.76 trillion in 2025.  In particular, the exports of industrial robots jumped 48.7 percent last year, with exports exceeding imports for the first time, which transformed China into a net exporter of robots.

The exports of green energy products such as electric vehicles, lithium-ion batteries, and photovoltaic products - soared by 27.1 percent year-on-year, while the exports of wind turbines rose 48.7 percent year-on-year

China's institutional power, market advantages, industrial system strengths, comprehensive indigenous industrial and supply chains, rapid breakthroughs in core technologies, massive domestic market and talent resource advantages will ensure China’s dominant position in future manufacturing and foreign trade.  Despite expected downward pressures and headwinds.  China’s average foreign trade is expected to continue to grow by a remarkable 5% in the next 5 years.

China has been making quantum leaps and now leads the world in most of the industrial 4.0 critical future technologies such as AI, biotechnology, big data, smart robotics, automation, drones, quantum computing and communication, blockchain, space, 5/6 G, IOT, EV, green energy and unmanned civilian and military technologies etc. 

China also dominates the world in legacy and core semiconductor manufacturing indispensable to global industrial production and manufacturing and is catching up fast on cutting edge microchip related technologies and manufacturing.

High technology products as a share of the total China export include:

  • Artificial Intelligence systems and components [8.5%]

  • 5G and 6G telecommunications equipment [7.2%]

  • Quantum computing hardware [5.8%]

  • Green and sustainable energy [15%]

  • EV and parts [10%]

  • Advanced materials [8%]

  • Biotechnology and pharmaceuticals [7%]

To ensure export resilience and sanction proof its exports, China has been re-routing its export destinations away from the US and some EU markets and gives greater emphasis on developing new trade corridors and trade partnerships with ASEAN and the global south countries – particularly those involved with China’s BRI.

China has established trade ties with over 240 countries and regions, and its trade with over 190 countries and regions is increasing.

Recent trade showed a 6.3 percent year-on-year increase in trade with BRI partner countries to reach $3.41 trillion, accounting for 51.9 percent of the country's total foreign trade value.

China's trade with the ASEAN grew by 8 percent to reach $1.09 trillion, trade with Latin America rose 6.5 percent to $0.57 trillion, and trade with Africa jumped 18.4 percent year-on-year to reach $0.36 trillion.

 

 


China’s present major export destinations include:

  1. ASEAN countries [22%]

  2. United States [17%]

  3. European Union [15%]

  4. Belt and Road Initiative countries 12%]

  5. Japan [6%]

The increased trade with ASEAN and Belt and Road Initiative countries highlights the success of China's regional economic integration efforts.

As China's export market becomes increasingly complex, digital logistics is playing a vital role in facilitating trade.  These include:

  • AI-powered route optimization and predictive analytics

  • Blockchain-based supply chain transparency and traceability

  • Automated customs clearance using the latest 2025 HS codes

  • Integrated carbon footprint tracking for sustainable shipping

  • Real-time multimodal shipment tracking and risk management

By leveraging these advanced digital solutions, Chinese exporters can navigate the complexities of global trade more effectively in 2025.

Looking ahead, several trends are shaping the future of Chinese exports and global trade:

  1. Increased focus on exporting services, particularly in AI and cloud computing

  2. Further integration of the Belt and Road Initiative with digital trade corridors

  3. Development of space-based manufacturing and resource extraction capabilities

  4. Expansion of China's digital currency for international trade settlements

  5. Growing emphasis on resilient and diversified supply chains

These trends present both challenges and opportunities for businesses involved in Chinese exports and global trade.

China's position as the world's largest exporter will remains for many years to come, driven by its leadership in advanced technology, sustainable products, and digital trade.

For businesses looking to succeed in this dynamic environment, leveraging cutting-edge digital logistics solutions is crucial.

As China continues to shape the future of global trade, staying informed about market trends and utilizing advanced digital logistics platforms will be key to thriving in the fast-paced world of international commerce.

Key Drivers of China's Trade Dominance can be summarized as below:

  1. Manufacturing Powerhouse: China has the world's largest manufacturing baser, producing advanced and basic goods at massive scale with high efficiency and lower costs, abundant skilled labor and huge economies of scale

  2. Strategic Infrastructure: Significant state investment in ports, railways, and industrial zones that reduces logistics costs while increasing efficiency.

  3. WTO Accession & Integration: Joining the WTO in 2001 opened its economy, integrating it deeply into global supply chains and attracting foreign investment,

  4. Control of Critical Materials: China controls the processing of vital rare earth elements, giving it leverages in high-tech industries from smartphones to defense,

  5. Advanced Technology & Digital Trade: Leadership in areas like electric vehicles, renewable energy tech, and digital platforms strengthens its export position.

  6. Huge Domestic Market: Its vast middle class population creates enormous demand, making it a massive importer and a major trading partner for other nations.

State Support & Policy:

Government backing and strategic industrial policies have nurtured its manufacturing and export capabilities