Recent data released by the State Administration of Foreign Exchange reveals strong indicators of the Chinese economy's performance, with the value of China's foreign trade in goods and services reaching approximately 5.28 trillion yuan (around US$758 billion) in December. These figures reflect the continued momentum of production and trade in the world's second-largest economy despite global challenges.
Details of the movement of trade in goods and services
In a detailed breakdown of the figures, the authority explained that merchandise exports continued their dominance, reaching approximately 2.66 trillion yuan, while merchandise imports exceeded 1.81 trillion yuan. This significant difference between exports and imports resulted in a remarkable trade surplus in the merchandise sector of 853.3 billion yuan, underscoring China's established position as the "world's factory" and its high competitiveness in international markets.
On the other hand, regarding the services sector, data revealed a typical structural imbalance in the Chinese economy. Service exports reached 354.1 billion yuan, compared to imports of 450.7 billion yuan, resulting in a trade deficit of 96.6 billion yuan. This deficit is usually attributed to China's substantial spending on transportation services, outbound tourism, and intellectual property.
Trade balance in US dollars
In US dollars, China's total exports of goods and services reached $427.6 billion in December, while its imports totaled $320.4 billion. This resulted in a total trade surplus (goods and services) of $107.2 billion, according to the agency.
The significance of the numbers in the global economic context
This data takes on particular significance when viewed within the context of the current global economic landscape. China's continued large trade surpluses, especially in the goods sector, indicate the resilience of its supply chains and their ability to adapt to fluctuations in global demand. These figures also bolster the country's foreign exchange reserves and support the stability of the local currency (the yuan) against foreign currencies.
Furthermore, the trade volume exceeding 5 trillion yuan in a single month reflects the depth of trade ties between Beijing and its international partners. Despite attempts by some major economies to diversify their supply chains, the data demonstrates that reliance on Chinese products remains a cornerstone of international trade, making monitoring these indicators crucial for investors and economic policymakers worldwide.
