Guangdong's foreign trade hit 8.3 trillion RMB in 2023
In the press conference held on January 16, details about Guangdong's 2023 import and export situation were disclosed. In 2023, the total value of Guangdong's foreign trade hit 8.3 trillion RMB, an increase of 0.3% over 2022. Let's get the key takeaways from our correspondent Xie Hongzhou, reporting directly from the scene.
Guangdong's foreign trade accounts for 19.9% of country's total import, export value
Xie Hongzhou: A lot of statistics have been released today at the press conference concerning Guangdong's import and export. There are some highlights that I have noted.
First of all, Guangdong's foreign trade in 2023 accounts for 19.9 percent of the country's total import and export value, ranking first for 38 consecutive years. That is a truly remarkable achievement. Additionally, the export of new energy products increased substantially, including the export of electric vehicles, solar cells, and lithium batteries. Statistics also show Guangdong's trade with emerging markets is on the rise, especially with countries participating in the Belt and Road Initiative, making up more than 30% of the total value.
What are the details of the highlights and the overview of the Guangdong's import and export, let's hear it from Wen Zhencai, the Deputy Director of Guangdong Sub-Administration of the GACC.
Trade with BRI countries on the rise
Wen Zhencai: In the face of the unstable global economic recovery, weakened external demand, price declines, and sluggish growth in major economies, Guangdong's foreign trade has withstood pressure, and overall remained stable with progress, surpassing expectations and reaching a historical high.
The overall foreign trade is stable, with a clear positive trend. In 2023, Guangdong's foreign trade accounted for 19.9% of the country's total foreign trade, ranking first in China. Trade with emerging markets increased, and trade with developed economies also rebounded. In 2023, Guangdong's trade with countries participating in the Belt and Road Initiative reached 3.04 trillion RMB, a year-on-year increase of 1%, accounting for 36.6% of the total foreign trade value, an increase of 0.3%. Trade with Latin America and Africa grew by 7.5% and 3.9%, respectively. In the 4th quarter, trade with the U.S. and the EU rebounded, accounting for 12.1% and 11.7% of the annual total, respectively.
Looking ahead, the complexity, severity, and uncertainty continue to grow. Insufficient demand continues to restrain businesses. Enterprises are facing many obstacles in manufacturing. While facing these difficulties and challenges, it is essential to recognize that the fundamental trend of China's economic recovery and positive trajectory over the long run remains unchanged.
More highlights of Guangdong's foreign trade
Guangdong has long been a vital hub for international trade. As the conference highlighted key trends in Guangdong's trade activities throughout the year 2023, we turn to Chen Wanling, professor at Guangdong University of Foreign Studies, to interpret these numbers and understand their implications for Guangdong's overall trade performance.
Guangdong's foreign trade achieved overall growth and structural improvement
Chen Wanling: It is quite pleasing to achieve such results under the global economic and trade situation of 2023.
The demand of developed countries was relatively sluggish in 2023, and the international geopolitical turmoil increased more uncertainties. At the same time, some developed countries including the United States are taking a "derisking" approach, aiming to gradually reduce the proportion of imports from China, which is very unfavorable for China's export situation.
However, a series of policies for stabilizing foreign trade and investment in 2023 have made a good impact. Therefore, achieving positive growth in 2023 is commendable.
Secondly, the structure of import and export has improved, with the increasing proportion of mechanical and electrical products. In addition, the growth rate of "New Three" products representing high-tech products is relatively high at 33.7%. Overall, there has been a positive growth in the total volume with some structural improvement, of Guangdong's foreign trade in 2023.
Guangdong's foreign trade will continue to grow in 2024
Chen Wanling: The trend of Guangdong's foreign trade in 2024 will continue to grow. From the data released in 2023, the data in the second half was better than the first half, so the trend may continue. In terms of the international economic and trade situation, the U.S. has controlled inflation. Raising interest rates ceases. Employment rebounds. Demand increases. It will lead to the increasing demand for imports. The destocking of other developed countries in Europe has come to an end. So, there will be additional demand in 2024 with economic recovery.
From a domestic perspective, China's domestic market may gradually recover in 2024. The importation will have a good performance with the recovery of domestic consumption. Secondly, a series of import and export promotion policies implemented since 2023 may further function in 2024. What’s more, the Belt and Road Initiative will improve market diversification. The expansion of BRICS and the operation of RCEP will make certain impact in 2024, which may further drive the growth of Guangdong's foreign trade.
Private Economy Driving Guangdong’s High-Quality Development
In 2023, Guangdong's private enterprises imported and exported 5.04 trillion RMB, an increase of 6%, accounting for 60.7% of Guangdong's total foreign trade value. To further boost growth and high-quality development of the private economy, Guangdong has recently released the "30 Measures".
How does the private economy impact Guangdong's foreign trade? And how will the latest "30 Measures" empower private enterprises to go global? We explore these questions with insights from Xie Baojian, Professor of the School of Economics at Jinan University.
The role of private economy is crucial
Xie Baojian: We often say, when it comes to global trade, all eyes are on China, when it comes to China's trade, the spotlight is on Guangdong, which is also one of the most developed regions for private economy. The role of the private economy and enterprises has been crucial in supporting Guangdong's foreign trade over the years.
Firstly, private enterprises strategically expand into overseas markets securing international orders and market shares. As such, the contribution of Guangdong's private enterprises is significant. Secondly, Guangdong's private enterprises have consistently demonstrated remarkable resilience in facing international trade frictions.
The third aspect is the unique advantage of private enterprises, which is, their flexible mechanisms. Through this adaptability, they continuously respond to changes in the international market. In doing so, private enterprises excel in occupying overseas markets comprehensively. In terms of exports, Guangdong's private enterprises align with the demands of the international market, capturing a significant share in the global market.
Guangdong conducted strategic boost for private economy
Xie Baojian: Firstly, the “30 Measures” introduced by the Guangdong government are conducive to boosting confidence among private enterprises. This is particularly evident in activating benefits for private investment and improving the welfare of private entrepreneurs.
Secondly, these “30 Measures” emphasize enhancing the innovation capabilities of private enterprises, specifically supporting private enterprises in participating in national and local government research projects. In terms of promoting innovative development in the private economy, this contributes significantly to raising the innovation level of the private economy.
Additionally, the “30 Measures” highlight to further support the expansion of international markets for private entrepreneurs, encourage them to participate in BRI projects, international exhibitions, and expos. Provide platforms for private enterprises to expand globally, enabling them to play a more significant role in the dual circulation of domestic and foreign markets.
Source | SFC
