700,000 Chinese companies engaged in import and export in 2024

By Guangming Daily Reporter Dong Bei

On January 15, China’s State Council Information Office held a press conference as part of the series on “China’s High-Quality Growth.” Li Yongjie, Deputy Representative for International Trade Negotiations at the Ministry of Commerce, stated that in 2024, domestic consumption showed steady growth, foreign trade reached new heights, the structure of foreign investment continued to improve, outward investment expanded continually, with fruitful outcomes of bilateral trade and economic cooperation.

Trade in goods reaches new heights

In 2024, China’s trade in goods witnessed new milestones, with goods quality steadily improving and contributing to the global economy and trade. According to Meng Yue, Director General of the Ministry of Commerce’s Foreign Trade Department, in 2024, China’s total import and export of goods reached 43.85 trillion yuan, a 5% increase year-on-year, demonstrating remarkable resilience. China’s imports in 2024 grew by 2.3%, reaching a historic high, and maintaining China’s position as the world’s second-largest importer for the 16th consecutive year.

China’s momentum in innovation is also stronger than ever. In 2024, nearly 700,000 companies participated in international trade. Chinese enterprises have increasingly focused on enhancing the added value of their products. The proportion of electromechanical product exports rose to 59.4%, and automobile exports exceeded 6 million units for the first time. Exports of green, low-carbon, smart, and digital products such as energy storage devices and smart home appliances grew rapidly, while traditional products like textiles and apparel are now more focused on tech-added-value and branding. New business models are emerging. In 2024, China’s cross-border e-commerce exports grew by 10.8%, accounting for 6% of total trade, allowing more high-quality products to directly reach consumers overseas. 270 customs-bonded maintenance projects were rolled out, expanding business opportunities for companies.

This is all coupled with an increasingly open environment of growth and a more diversified network of trading partners. China’s imports and exports to traditional markets continued to grow, while its trade with Belt and Road countries now accounts for 50.3% of its total. In 2024, trade with these countries reached 22.1 trillion yuan. Nearly 54% of China’s imported goods came from Belt and Road countries; Chinese products exported to these nations now include consumer goods, equipment and parts, which promote the industrial development of these countries.

China’s high-standard free trade network continues to expand globally. Li Yongjie stated that China has signed 23 free trade agreements with 30 countries and regions across all five continents, further broadening the network’s reach while progressively increasing the openness of these agreements.

Shrinking the negative list while optimizing the business environment

In 2024, China’s foreign investment structure continued to improve. The first 11 months saw 52,000 new foreign-invested companies established, with a total of 749.7 billion yuan in foreign capital inflow. “We have continuously relaxed market access and eliminated restrictions in the manufacturing sector, with high-tech manufacturing now accounting for 11% of foreign investment. Pilot programs for opening up the telecommunications and healthcare sectors are also ongoing, and many projects are currently in negotiation or implementation stages,” according to Li Yongjie.

China has also improved its entry and exit policies, offering mutual visa exemptions with 25 countries, and unilateral visa exemptions for 38 countries. These policies have facilitated foreign investors’ attendance at conferences, exhibitions, project negotiations, and technical exchanges in China. Li stated that in 2025, the Ministry of Commerce will further downsize the negative list while optimizing the business environment and expanding institutional opening-up.

To actively open up its economy and relax market access, China has introduced a negative list for cross-border trade in services across its free trade zones, which allows for greater openness in areas such as professional qualifications, finance, professional services, and culture, making it easier for foreign nationals to provide services in China. Going forward, the Ministry of Commerce will continue to promote the openness of the service sector, especially in areas of telecommunications, healthcare, and education, and will revise the “Catalogue of Encouraged Industries for Foreign Investment” to increase the appeal of China’s investment policies.

In 2024, the Ministry of Commerce organized 28 “Invest in China” promotional events both at home and abroad, significantly boosting the brand’s reach. “We will continue with the ‘Invest in China’ series this year to expand investment channels, strengthen exhibitions as investment platforms, and further empower investment promotion,” Li emphasized.

China’s consumer market remains stable

The consumer market showed steady growth in 2024. From January to November, total retail sales of consumer goods reached 44.3 trillion yuan, up 3.5% year-on-year.

Li Gang, Director General of the Ministry of Commerce’s Market Operations and Consumption Promotion Department, highlighted several characteristics of China’s consumer market: strong growth in bulk consumption, increased demand for service consumption, a surge in new consumption trends, and vibrant consumption in rural areas.

The “trade-in for new” policy has had a significant impact, particularly since the policy was enhanced in July, leading to a noticeable rebound in sales of key items such as cars, home appliances, and furniture. From January to November, retail sales of household appliances and furniture above certain threshold increased by 9.6% and 2.9%, respectively, with growth reaching 22.2% and 10.5% in November. Sales of passenger vehicles grew by 4.7% year-on-year.

Service consumption has also seen rapid growth, with retail sales of services growing by 6.4% from January to November. Cultural and tourism consumption has remained active, with domestic trips and spending increasing by 15.3% and 17.9%, respectively, in the first three quarters.

New technologies such as big data, artificial intelligence, and virtual reality have sparked new consumption dynamics. From January to November, online retail sales increased by 7.4%, with sales of smart learning devices and headphones seeing sales growing more than a fold during the “shopping spree” on November 11th. Green consumption continues with a high momentum, with EV sales growing by 41.2% year-on-year, and the penetration rate exceeding 50% for five consecutive months.

In the first three quarters, per capita consumption of rural residents grew by 6.5%. From January to November, retail sales in rural areas hit 6 trillion yuan, a 4.3% increase from the previous year.

“Looking ahead to 2025, China’s economic fundamentals remain solid, with many advantages, strong resilience, and vast potential. The long-term positive trends and growth enablers have not changed. With continued measures to be rolled out, the consumer market is expected to maintain a steady growth in 2025,” Li Gang concluded.