The dawn of world economic recovery?

As we all know, the drives of economic development are consumption, investment, and exports. In the vision of the world, exports and imports are essential. They connect the world goods manufacturing and consumption. Therefore, the strong performance of imports and exports can greatly enhance economic vitality and stimulate economic development. On 2024.7.12, data released by the China General Administration of Customs showed that in the first half of 2024, the total value of China’s import and export of goods trade achieved a year-on-year increase of 6.1%, with a total of 21.17 trillion yuan, setting a new record for the same period in history. Among the export products, mechanical and electrical products occupy a dominant position, with the proportion close to sixty percent. Besides, in terms of exports, China performed well. Total exports reached 12.13 trillion yuan, up 6.9% year-on-year. Imports were also stable, with total imports at 9.04 trillion yuan, up 5.2% year-on-year.

It is worth mentioning that China’s import and export scale exceeded 21 trillion yuan for the first time, and the quarterly growth rate showed a trend of accelerating quarter by quarter. In particular, in the second quarter, the growth of imports and exports reached 7.4%.

From IMF’s July 2024 World Economic Outlook report, global growth is broadly unchanged amid persistent services inflation. Meanwhile, Global growth is projected to align with the April 2024 World Economic Outlook forecast, at 3.2 percent in 2024 and 3.3 percent in 2025, maintaining a low level.

Therefore, the world economy still needs to recover and a strong drive is required. So why can China’s imports and exports be this drive? Can China’s imports and exports take on such a heavy responsibility?

On 2024.4.10, local time, the World Trade Organization (WTO) released the 2023 Global Trade Outlook and Statistics report. Data show that in 2023, China’s import and export scale reached 5.94 trillion US dollars, ahead of the second place United States 0.75 trillion US dollars, maintaining the status of the largest country in global goods trade for 7 consecutive years. China’s international market share of exports was 14.2% and the international market share of imports was 10.6%. Therefore, China undoubtedly has a significant impact on world imports and exports.           

As mentioned above, China’s exports are closely linked to production. As the factory of the world, there is no denying that China can also promote the construction of world and economic growth. Beyond that, China’s exports and imports are very diversified, covering the vast majority of the world’s countries. In the first half of 2024, the total value of trade between China and ASEAN was 3.36 trillion yuan, an increase of 10.5 percent.

At the same time, China’s total trade value with the US and Korea has also increased. In addition, the total import and export volume of the Belt and Road countries reached 10.03 trillion yuan, an increase of 7.2%.

In short, China has extensive connections and influence in the global trade network and plays a positive role in promoting regional economic cooperation and trade. In conclusion, China’s foreign trade data in the first half of the year shows the steady growth of foreign trade and the continuous optimization. China has made positive contributions to the constant development of China’s economy and the recovery of the global economy.

Of course, world economic recovery will never be easy to achieve. And it also requires the cooperation and joint efforts of all countries in the world. Though WTO has good expectations of global trade, it also warns that regional conflicts, geopolitical tensions, and economic policy uncertainty could limit the recovery of global trade. Meanwhile, the recovery of the economy can not only rely on foreign trade.

In an economic globalization world, no one should be left alone and all should work together. Overall, the strong development of China’s imports and exports might be seen as the dawn of the world’s economic recovery. World economic recovery also needs more cooperation and more endeavor.

By Le Tianyu