China's trade not at expense of partners

The year 2025 proved a roller-coaster ride for global trade. Reciprocal tariffs rattled markets, distorting expectations and prompting urgent reactions from businesses worldwide. Some companies rushed to import goods, wary of future tariff hikes. Others scrambled to restructure supply chains, seeking stability amid uncertainty. The turbulence spared no one — small and medium-sized enterprises felt the strain, while even multinational giants struggled to navigate the shifting trade currents.

Amid this global upheaval, China stood out as a rare safe harbor. Not only did the country maintain its own stability, but it also created critical conditions for its partners to grow. Last year, China's total goods trade reached 45.47 trillion yuan ($6.53 trillion), a 3.8 percent increase marking the ninth consecutive year of growth. According to the UN Conference on Trade and Development's Global Trade Update, as of December 2025, global trade totaled approximately $35 trillion. With an average exchange rate of 7.14 yuan per dollar, China accounted for roughly 18.2 percent of global trade — meaning one in every five dollars exchanged worldwide involved China. Put simply, the health of China's foreign trade directly influences global commerce.

China's export and import dynamics both played crucial roles in 2025, though in different ways. Exports reached 26.99 trillion yuan, up 6.1 percent from the previous year. Mechanical and electrical products remained the backbone of China's exports, but high-tech and "new triad" products — emblematic of China's manufacturing innovation — grew 13.2 percent and 27.1 percent, respectively. Smartphones, lithium batteries, integrated circuits, automobiles, automotive components, laptops, solar panels, general machinery, home appliances and marine vessels dominated the export charts. Self-branded products saw a 12.9 percent increase, with smartwatches and intelligent toys selling across 170 countries and regions.

China's manufacturing advantage lies not only in scale but also in a complete and flexible industrial ecosystem. This allows the country to integrate seamlessly into global supply chains, reducing costs, boosting efficiency, accelerating innovation and driving growth for partners. Take Apple as an example. Despite relocating parts of its production to India, China remains a pivotal supply chain hub and key market. Its robust manufacturing capabilities and rapid adaptation to complex production processes help companies maintain product competitiveness and respond swiftly to shifting consumer demand.

China's exports are not confined to finished goods; a vast portion consists of intermediate products that underpin industrialization worldwide. Modern manufacturing requires sophisticated infrastructure and local support systems. Without them, R&D and production capacity struggle to take root. China's intermediate goods fill this gap, enabling trading partners to minimize the shocks of recent trade protectionism and geopolitical disruptions. Stable supply of intermediate goods also helps countries combat inflationary pressures, preserving room for economic growth.

Consider the automotive sector, which has flourished globally in recent years. China's exports of auto parts — including in-vehicle chips, sensors and wiring harnesses — have become crucial support for automotive industries across Europe, North America, Southeast Asia and the Middle East. New energy vehicles illustrate another dimension: they represent not just a transportation upgrade but also a gateway into the digital economy. Chinese-made NEVs, prized for their affordability, innovative design and consistent quality, are accelerating the global transition toward clean energy.

Imports, by contrast, highlight China's magnetic market power and its role in creating growth opportunities for global partners. China's imports in 2025 totaled 18.48 trillion yuan, a 0.5 percent increase, maintaining its position as the world's second-largest import market for the 17th consecutive year. As tariffs continue to decline and market openness expands, the variety and volume of imported goods have increased, offering more opportunities for countries to export to China while supporting domestic development. In 2025, China saw growth in imports from more than 130 countries and regions — seven more than the previous year.

Importantly, China does not pursue trade surpluses at the expense of partners. Instead, it actively expands imports, streamlines trade facilitation, and provides conditions that enable other countries to grow their exports. Two notable trends have emerged: first, China's domestic market is expanding rapidly, offering a larger platform for imports; second, demand is becoming more differentiated, driving diversity in imported goods and creating opportunities for niche sectors.

Private enterprises form the backbone of China's foreign trade. In 2025, over 780,000 companies recorded imports or exports. Among them, private firms achieved a 7.1 percent increase in trade value and accounted for 57.3 percent of the total trade. Their agility and responsiveness underscore the dynamism of China's trade ecosystem.

Looking ahead to 2026,China's foreign trade is poised to maintain strong growth. Global supply chains are finding a new equilibrium after the shocks of reciprocal tariffs. Extraordinary fluctuations from rush imports and exports are gradually subsiding, making room for trade underpinned by trust and shared commitment to globalization. Chinese companies are embracing artificial intelligence and other cutting-edge technologies, with open-source large models accelerating industrial innovation and efficiency. Imports are expected to grow steadily, reducing dependency on single markets while promoting mutual learning and cross-fertilization of products.

Early 2026 has already seen landmark agreements on EV regulations between China and the European Union, as well as China and Canada, reinforcing optimism about trade recovery. Emerging areas such as services and digital trade are likely to further strengthen China's goods trade, potentially becoming new engines for global economic growth.

In a world of uncertainty, China continues to anchor the global trading system. Its stable exports and vast, open market not only fuel domestic development but also offer partners a reliable foundation for growth. For countries navigating the rough seas of global commerce, China remains a vital port — a place where innovation, scale, and stability converge to keep trade moving forward.

The author is a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

The views don't necessarily reflect those of China Daily.

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