New drivers powering growth momentum

Despite drastic changes and rising uncertainties in the global trade and investment landscape, China’s economy continues to demonstrate resilience and steady upgrading momentum.

According to data released by the National Bureau of Statistics on Tuesday, the country’s exports and imports of goods reached 4.45 trillion yuan ($658.6 billion) in May, a 16.9 percent year-on-year increase. The vigorous growth shows that foreign trade is still a powerful engine for the economy.

The resilience of China’s foreign trade is evident in the following aspects: first, the export structure has continued to evolve toward new and high-quality products, with a higher share of high-tech products such as machinery and electronics; second, the country has diversified its markets, effectively mitigating the risks associated with relying on a single primary market; and third, imports have also shown strong growth, with both domestic and foreign demand working in tandem.

A breakdown of the numbers offers an insightful picture of the country’s economic interaction with the rest of the world.

Exports rose 13.8 percent in May from the same period last year, while imports increased 21.5 percent, the General Administration of Customs data showed. In the first five months of the year, total foreign trade amounted to 20.68 trillion yuan, up 15.3 percent year on year.

China has also made steady progress in upgrading its exports. As Wang Guanhua, a spokeswoman for the NBS, said at a news conference on Tuesday, technology-intensive products with a high added value have become a major driver of export growth, indicating the country’s ongoing efforts to nurture high-tech sectors and let them play a bigger role in the economy are paying off.

From January to May, the amount of investment that went to high-tech sectors recorded a year-on-year rise of 4.5 percent. The investment expansion was particularly notable in integrated circuit manufacturing and lithium-ion battery manufacturing.

Given the drop in fixed asset investment, which was largely caused by the slowdown in the real estate market, the rise in high-tech investment is an encouraging sign that the country is speeding up efforts to shift its growth drivers to emerging industries and new quality productive forces.

As China strives to make its industries smarter and greener, its consumption structure is also evolving, with residents spending more on products featuring advanced technologies. During the first five months of this year, the retail sales of wearable intelligent devices more than doubled, and the retail sales of services increased 5.4 percent year-on-year.

Consumption of services is also building up steam, as demonstrated by the popularity of sports events, concerts and other leisure events across the country, and the large number of tourist trips during holidays. Vibrant services consumption has great potential to boost domestic demand.

Nevertheless, as pointed out by the bureau’s officials on Tuesday, challenges persist, including a complicated international situation that threatens to disrupt global trade, as well as domestic demand that needs further support.

The country is responding to these challenges with a series of targeted policies, including an income growth plan, equipment renewal and trade-in programs and employment initiatives.

As the 15th Five-Year Plan (2026-30) period unfolds, the central authorities have made it clear that the country will continue to pursue high-quality development, deepen reform and expand high-standard opening-up.

By doing so, China is expected to not only underpin its own long-term growth but also deliver steady opportunities for its trading partners and contribute to the regional and global economy.

Editorial, China Daily