China's foreign trade will continue its quality upgrade in the second half of the year, bolstered by its industrial chain advantages, robust innovation momentum and strong policy support, exporters and market watchers said on Monday.
Despite a complex and challenging external environment, the accelerated cultivation of new quality productive forces and further release of trade stabilization policy effects are expected to provide a solid foundation for sustaining export growth through the year, they added.
China set a record for foreign trade in the first half, achieving a year-on-year increase of 6.1 percent, reaching 21.17 trillion yuan ($2.9 trillion), while its exports surged 6.9 percent on a yearly basis to 12.13 trillion yuan, data from the General Administration of Customs showed.
Developed countries are in the process of shifting from service spending to increased demand for goods, said Wei Hao, deputy dean of the Business School of Beijing Normal University. This will support China's exports in the second half, Wei added.
Moreover, the global upward cycle in technology will continue to benefit exports of China's semiconductor, mechanical and electrical products, creating structural growth potential for the country's exports this year, said Wei.
Chinese manufacturers' exports of mechanical and electrical products — including automobiles, smartphones, automatic data processing equipment and integrated circuits — amounted to 7.14 trillion yuan between January and June, surging 8.2 percent year-on-year, accounting for 58.9 percent of the total value of the nation's exports, Customs statistics showed.
This underscores China's ongoing efforts in scientific and technological innovation, industrial upgrading and brand building in overseas markets, said Kang Ren, vice-president of Naipu Mining Machinery Co Ltd, a Shangrao, Jiangxi province-based mining equipment manufacturer.
Thanks to the tangible Belt and Road Initiative cooperation and the company's continuous market expansion in emerging markets, including Serbia, Kazakhstan, Peru and Indonesia, Naipu Mining Machinery's overseas revenue surpassed domestic revenue for the first time in the first half.
"At present, we have 600 million yuan worth of orders lined up for production, with schedules extending into 2025. Our workshops are operating daily to meet these deadlines," said Kang, adding that the company had established factories in Africa and South America, further cutting production costs and reaching more clients.
Naipu Mining Machinery's exports reached 320 million yuan during the January-June period, marking a year-on-year increase of 200 percent, the highest growth in recent years, data from Nanchang Customs showed.
Eager to enhance its earning strength, SANY Heavy Equipment Co Ltd, a Shenyang, Liaoning province-based mining and construction machinery manufacturer, said its hybrid and electric widebody dump trucks are becoming increasingly popular in overseas markets.
Its products are exported to over 40 countries and regions, including New Zealand, the Association of Southeast Asian Nations and Nigeria, according to information released by Shenyang Customs.
Sun Wen, head of the company's export unit, said its clients are also demanding longer battery lives and smarter control systems, pushing it to continuously launch new products.
The electrification trend of construction machinery with small operating radiuses and fixed activity is more obvious, such as electric-powered loaders and dump trucks used in factories, mines and ports, Sun added.
Confronted with the challenges of trade remedy measures and imported inflation, the price advantages of Chinese goods help alleviate price pressures in many countries, making Chinese exports crucial for the global economy, said Zhang Xiaolan, an assistant researcher at the department of economic forecasting of the State Information Center in Beijing.
As global industrial chains undergo accelerated restructuring, China's production and exports are increasingly linked with manufacturers in Southeast Asia, Central and Eastern Europe and Latin America. The country will continue to be a powerful engine of the global manufacturing sector, said Zhang.
(Source: China Daily)