Phoenix TV:

China just celebrated the 20th anniversary of its accession to the World Trade Organization (WTO) last month. What are the characteristics of China's import and export of goods over the past 20 years? Thank you.

Li Kuiwen:

Thank you for your question. The year 2021 marked the 20th anniversary of China's accession to the WTO. Customs data showed that the total volume of China's imports and exports increased from 4.22 trillion yuan in 2001 to 39.1 trillion yuan in 2021, up by an annual average rate of 12.2%. Customs data are official figures from China's import and export of goods. The statistics reflect the leap-forward development of our trade in goods over the past 20 years.

First, the total import and export of goods have increased by more than eight times, making China the world's largest trader in goods. The total value of China's imported and exported goods was 4.22 trillion yuan in 2001, and exceeded 10 trillion yuan, 20 trillion yuan, and 30 trillion yuan in 2005, 2010, and 2018, respectively. The figure approached 40 trillion yuan in 2021, registering an increase of 8.3 times in 20 years. In particular, the total value rose from 24.4 trillion yuan to 39.1 trillion yuan in the past 10 years, with an increment of 14.7 trillion yuan, equivalent to China's import and export of goods in 2009. This has epitomized China's achievements in reform and opening-up in the new era. What's more, China's import and export of goods accounted for only 4% of the world's total in 2001, and its share jumped to 13.5% in the first three quarters of 2021. In 2013, China became the world's largest trader of goods. In 2021, the total value of US dollar-denominated imports and exports exceeded 6 trillion yuan for the first time in history.

Second, the structure of exports has changed significantly, with machinery and electronic products now accounting for nearly 60% of all exports. Over the past 20 years, China's export of goods has grown at an average annual rate of 12.5%. Machinery and electronic products have become the most exported products, accounting for 59% of the total in 2021. It is worth mentioning that since the outbreak of COVID-19, China has actively promoted international anti-pandemic cooperation and provided hundreds of millions of masks, protective suits, test kits, vaccines, and other materials to the international community, thus contributing to the global COVID-19 response and economic recovery.

Third, imports have continuously expanded, and the import of high-tech and resource products has grown steadily. Over the past 20 years, China's import of goods has increased at an average annual rate of 11.8%. In 2009, China became the world's second-largest importer. In the first three quarters of 2021, China's imports accounted for 12.1% of the international market. A more open Chinese market has enabled the rest of the world to better share in the dividends brought by its economic growth and booming consumption. Over the past 20 years, China's import of high-tech products has risen steadily at an average annual rate of 14%, promoting the transformation and upgrading of the industrial structure. The import of resource products has expanded in an orderly manner. The import of metal ore, crude oil, coal, natural gas, and other resource products has increased at an average annual rate of 18%, providing a strong supply to ensure steady domestic economic growth.

Fourth, China has diversified its trading partners, with ASEAN becoming our largest trading partner. Over the past 20 years, we have maintained stable trade relations with traditional markets, including the European Union, the United States, Japan, and South Korea, which together accounted for 38.3% of China's total foreign trade in 2021. At the same time, we have actively explored emerging markets such as ASEAN, Africa, Latin America, Russia, and India. These partners accounted for 16% of China's total foreign trade in 2001, but the figure increased to 30.7% in 2021. Among them, ASEAN became China's largest trading partner in 2020, and it remained so in 2021, accounting for 14.5% of China's total foreign trade. It is worth noting that China has continued to deepen trade relations with countries along the Belt and Road, expand trade scale and further promote the balanced and mutually beneficial development of trade. 

Fifth, the number of foreign trade entities multiplied, with private enterprises taking up the largest share of all business entities in foreign trade. In 2021, 567,000 Chinese enterprises actually engaged in import and export business, 6.3 times more than that in 2001. In 2019, private enterprises took up a 42.7% share in the gross value of imports and exports of China, increasing significantly from 6.1% in 2001. In 2021, their share grew to 48.6%. Over the past 20 years, private enterprises have taken up the largest share of all foreign trade entities in China. Meanwhile, the number of foreign-invested enterprises actually engaging in import and export business also further increased to reach 82,000 in 2021, an increase of 21,000 compared with that in 2001, with the average annual import and export scale of the enterprises reaching 170 million yuan, increasing by 4.8 times compared with 2001.

Sixth, in foreign trade, new driving forces have been constantly stimulated, and new business modes have emerged one after another. Customs statistics show that in 2021, imports and exports in China's comprehensive bonded zones, pilot free-trade zones, and the Hainan Free Trade Port increased by 24.3%, 26.4%, and 57.7%, respectively, demonstrating a strong development momentum. In terms of the new trade modes, the scale of cross-border e-commerce and market procurement trade expanded rapidly. In 2021, the import and export volume of China's cross-border e-commerce reached 1.98 trillion yuan, up 15%, and market procurement trade's exports increased by 32.1%. Thank you.