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Market Diversification Supports Trade Resilience

Market Diversification Supports Trade Resilience

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Market Diversification Supports Trade Resilience

by Geraldine S.
03/10/2025
in Market Trends

China’s policymakers have pledged to enhance policies aimed at stabilizing foreign trade and assisting enterprises in securing orders and expanding into new markets. This commitment was emphasized during the annual meetings of China’s top legislative and political advisory bodies.

China’s evolving export product mix, with a focus on greener, digitalized, and high-value offerings, continues to bolster its competitiveness in the global market. Additionally, its large domestic consumer base provides a steady demand for quality imports, supporting overall trade resilience.

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“Regardless of external changes, we should remain committed to opening-up,” stated Premier Li Qiang while delivering the Government Work Report, outlining China’s trade strategies for the year ahead.

Economic analysts note that shifting global trade policies present new challenges, but China’s foreign trade sector continues to benefit from broader global economic recovery. According to the World Trade Organization, global merchandise trade is projected to grow by 3% year-on-year in 2025, exceeding last year’s forecast and providing a positive outlook for China’s continued market expansion.

Innovation and technological advancements play a crucial role in China’s export strength. The production of new energy vehicles exceeded 10 million units for the first time in 2024, with exports surpassing 2 million units, according to the China Association of Automobile Manufacturers. This growth underscores China’s ability to adapt to changing market demands and maintain a strong position in international trade.

China is also diversifying its global trade partnerships to mitigate external risks. In 2024, exports to Belt and Road Initiative (BRI) partner countries grew by 9.6% year-on-year. Exports to ASEAN rose by 13.4%, while exports to Brazil, the United Arab Emirates, and Saudi Arabia increased by 23.3%, 19.2%, and 18.2%, respectively, according to the General Administration of Customs. These growth rates significantly outpaced China’s exports to traditional markets such as the European Union and the United States, which grew by 4.3% and 6.1%, respectively.

Businesses are also adjusting their strategies to align with evolving trade conditions. Lu Xiaojie, head of Jiangsu-based Nantong Winner Sports Goods Co. Ltd., noted that the company has successfully shifted its focus from traditional markets to emerging regions. “Our share of the U.S. market has declined from around 40% to about 10%, but we have expanded into South America, Africa, and other developing regions, offsetting declines in our previous markets. We anticipate an export volume increase of approximately 20-30% this year,” Lu said.

China continues to prioritize market openness and import expansion. In 2024, China’s imports reached a record 18 trillion yuan ($2.49 trillion), marking a 2.3% year-on-year increase and solidifying its position as the world’s second-largest import market for the 16th consecutive year, according to the Ministry of Commerce.

China’s vast market size, diverse consumer demand, and sustained economic growth remain key drivers of global trade. “The transformation of China’s domestic market into a shared global marketplace is contributing to the momentum of the world economy,” said He Yadong, spokesperson for the Ministry of Commerce.

Discover top stories in supply chain logistics news on The Supply Chain Report. For free tools related to international trade, visit ADAMftd.com.

#GlobalTrade #SupplyChainNews #TradePolicies #MarketTrends #EconomicIndicators

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© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.