May Foreign Trade Defied Pressure: These Markets and Products Soared!

Translation of the Article on China's Foreign Trade Performance (January-May 2025)

China's Foreign Trade Defies Global Headwinds: Export Resilience Driven by Diversified Markets and High-Tech Products
Data released by China Customs on June 12, 2025

Key Figures

• January-May 2025:

  • Total trade value: 17.94 trillion yuan (+2.5% YoY)
  • Exports: 10.67 trillion yuan (+7.2% YoY)
  • Imports: 7.27 trillion yuan (-3.8% YoY)

• May 2025:

  • Total trade value: 3.81 trillion yuan (+2.7% YoY)
  • Exports: 2.28 trillion yuan (+6.3% YoY)

Drivers of Export Resilience

1. Trade Policy Easing with the U.S.
   The May 2025 Sino-U.S. joint statement eased tariff tensions, temporarily slowing the "reciprocal tariff" implementation. This created a window for Chinese exporters to accelerate shipments to non-U.S. markets.

2. Preemptive Export Surge
   Exporters preemptively increased shipments to markets outside the U.S. amid uncertainties over prolonged global trade conflicts.

3. Diversified Trading Partnerships
   Reduced reliance on the U.S. market, with stronger ties to emerging economies.

Product Performance: High-Tech Growth vs. Consumer Electronics Decline

• Strong Growth Segments (YoY):

  • Integrated Circuits: +33.43% (May), accelerating from +20.22% in April.
  • Ships: +43.65% (May), maintaining momentum despite a high base in April.
  • Automobiles & Auto Parts: Both value and volume rose in May.

• Declining Segments (YoY):

  • Mobile Phones: -23.18%
  • Home Appliances: -8.87%

• Overall Electronics:

  • Electromechanical products accounted for 60% of total exports (+9.3% YoY).
  • Key contributors:
    • Integrated circuits: 526.4 billion yuan (+18.9%)
    • Industrial robots: +55.4% (January-May)

Market Dynamics: Diversification Pays Off

Strategic Insights

• High-Tech Leadership:
  China’s equipment manufacturing sector (e.g., EVs, industrial robots) contributed 73% of export growth, driven by R&D investments and global demand for green tech .

• Market Diversification:

  • Exports to non-Western markets surged, with ASEAN and Africa becoming critical growth engines.
  • The "Belt and Road" initiative bolstered trade with 60+ countries, contributing 4.2% overall growth .

• Policy Support:
  Tax incentives for exporters and streamlined customs procedures mitigated external shocks.

Challenges Ahead

• Global Demand Slowdown:
  Weak consumption in advanced economies (e.g., U.S., EU) may pressure labor-intensive sectors (e.g., textiles).
• Geopolitical Risks:
  Ongoing U.S.-China tech decoupling and semiconductor export controls pose long-term risks.

Conclusion
China’s foreign trade demonstrated resilience through strategic diversification and high-tech innovation. While short-term volatility persists, the focus on emerging markets and advanced manufacturing positions the country for sustained growth in global trade.

Sources: General Administration of Customs of China, State Council Information Office