China has surpassed the United States as the world's greatest exporter while ranking second among the world's top importers. Despite its stringent rules, the country is relatively open to foreign commerce, which will account for 35% of its GDP in 2020. (World Bank, 2022).
According to the Economic Complexity Index, China was the world's second-largest economy in terms of GDP (current US dollars) in 2020, the first in total exports, the second in total imports, the 68th in terms of GDP per capita (current US dollars), and the 28th most complicated economy (ECI).
China exported $2,498,569,865.64 in thousands of US dollars and imported $2,068,950,254.60 in thousands of US dollars, resulting in a positive trade balance of $429,619,611.04 in thousands of US dollars. China's Effectively Applied Tariff Weighted Average (customs duty) is 2.53%, whereas the Most Favored Nation (MFN) Weighted Average tariff is 3.29%. Trade growth is -3.51 percent, compared to -1.13 percent for the rest of the globe. In current US dollars, China's GDP is $14,279,937,467,431 The value of China's services export is 244,359,155,290.70 in BoP, current US dollars, while the value of China's services import is 505,508,186,201.57 in BoP, current US dollars. China's exports of goods and services are 18.50 percent of GDP, while imports of goods and services are 17.34 percent of GDP.
Exports of China
Broadcasting Equipment ($223B), Computers ($156B), Integrated Circuits ($120B), Office Machine Parts ($86.8B), and Other Cloth Articles ($60.7B) are China's top exports, with the majority exported to the United States ($438B), Hong Kong ($262B), Japan ($151B), Germany ($112B), and South Korea ($110B).
China was the world's largest exporter of Broadcasting Equipment ($223 billion), Computers ($156 billion), Office Machine Parts ($86.8 billion), Other Cloth Articles ($60.7 billion), and Telephones ($51 billion) in 2020.
Imports of China
China's top imports are crude petroleum ($150 billion), integrated circuits ($144 billion), iron ore ($99 billion), automobiles ($42 billion), and soybeans ($37.4 billion), primarily from Japan ($133 billion), South Korea ($131 billion), the United States ($122 billion), Germany ($106 billion), and Chinese Taipei ($104 billion).
China was the world's largest importer of Crude Petroleum ($150 billion), Iron Ore ($99 billion), Soybeans ($37.4 billion), Petroleum Gas ($36.6 billion), and Copper Ore ($33.9 billion) in 2020.
China shares land borders with North Korea, Russia, Mongolia, Kazakhstan, Tajikistan, Kyrgyzstan, Afghanistan, Pakistan, India, Nepal, Bhutan, Laos, Vietnam, Hong Kong, and Macau, as well as marine borders with Indonesia, Brunei, Japan, South Korea, Malaysia, and the Philippines.
The increase in China's year-on-year exports in November 2021 was primarily explained by an increase in exports to Brazil ($646M or 22.1 percent), Turkey ($475M or 34.8 percent), and Poland ($434M or 21.3 percent), as well as increases in product exports of Passenger and Cargo Ships ($406M or 34.2 percent), Vehicle Parts ($352M or 11.6 percent), and Electrical Transformers ($234M or 13.1%). In November 2021, the increase in China's year-on-year imports was primarily explained by an increase in imports from Iraq ($2.77 billion or 1.32 percent), Russia ($1.01 billion or 20.2 percent), and Kuwait ($983 million or 227 percent), as well as product imports of Crude Petroleum ($8.19 billion or 56.8 percent), Iron Ore ($995 million or 14.6 percent), and Pig Meat ($570 million or 257 percent).
China exported mostly to the United States ($54.7 billion), Hong Kong ($35.4 billion), Japan ($15.3 billion), South Korea ($14.4 billion), and Vietnam ($13 billion) in November 2021, and imported mostly from Taiwan ($24.3 billion), South Korea ($20.7 billion), Japan ($18.6 billion), the United States ($17.8 billion), and China ($15.3 billion).
Telephones ($28.7B), Computers ($19.7B), Integrated Circuits ($15.7B), Light Fixtures ($4.83B), and Models and Stuffed Animals ($4.63B) were China's top exports in November 2021. China's main imports in November 2021 were Integrated Circuits ($41.5 billion), Crude Petroleum ($24.7 billion), Iron Ore ($12 billion), Petroleum Gas ($9.28 billion), and Gold ($6.1 billion).
Trade has grown in importance as a component of China's total economy, and it has been a key instrument in the country's economic modernization. According to the World Trade Organization 2021, exports of goods in 2020 totaled USD 2,590.2 billion, with imports totaling USD 2,057.2 billion, while exports and imports of services totaled USD 278 billion and USD 377.5 billion, respectively. For 2020, China reported an overall 5% gain in exports and an 8% drop in imports. According to World Bank 2021 statistics, China's trade surplus for goods was USD 535,37 billion in 2020, up from USD 425.2 billion in 2019. In 2020, the entire trade balance (including services) was USD 369.67 billion, up from 131.84 billion in the previous year.
Import permits are required for more than half of China's value imports. The initial authorization is provided by several organizations (depending on the product), but the final delivery is subject to MOFTEC acceptance. To secure these permits, the importer must have accurate foreign exchange reserves and demonstrate the need to import. According to China's investment policy, the delivery of licenses frequently depends on the field of activity, which may be promoted, approved, regulated, or simply forbidden. In any event, it is critical to establish strong relationships with the Chinese Administration to get these permits.