Economic Watch: Navigating challenges, China's foreign trade forges ahead with resilience

BEIJING, Aug. 8 (Xinhua) -- The 2026 FIFA World Cup is still some time away, but for merchants in Yiwu, a city in east China's Zhejiang Province often called the "world's supermarket," the business season is already in full swing.

According to local customs, the city's exports of sporting goods and equipment reached 5.86 billion yuan (about 815 million U.S. dollars) in the first half of 2025, a 16.8 percent year-on-year increase. Exports to the World Cup host nations -- the United States, Canada, and Mexico -- grew by 12 percent.

Yiwu's ability to anticipate and act on future demand is a direct result of its agile supply chain, which can respond swiftly from design to production. This dynamic capability is a vivid example of how China's foreign trade is navigating global headwinds and turning challenges into opportunities.

The trade challenges of recent years cannot be understated. Amid rising unilateralism and protectionism, the external environment for Chinese businesses has grown more complex, severe and uncertain. Yet, China's foreign trade has achieved remarkable growth against this trend.

This resilience is built on strong performance. Compared to 2020, China's total trade in goods had grown by 32.4 percent by 2024, its trade in knowledge-intensive services rose by 38 percent, and its digitally deliverable services expanded by nearly 40 percent.

National customs data released Thursday showed that China's total goods imports and exports in yuan-denominated terms rose to 25.7 trillion yuan in the first seven months of 2025, up 3.5 percent year on year. The growth rate accelerated from an increase of 2.9 percent registered in the first half of the year.

The path of foreign trade is challenging, but by no means impossible, said Zhu Xiaojun, a director at the global lithium battery company EVE Energy Co., Ltd. "We prepared our technology in advance, proactively extended our industrial chain, and continuously improved our global manufacturing, service and cooperation capabilities."

This shift from competing on price to competing on innovation is not an isolated trend. In east China's Jiangsu Province, a company making high-end outdoor umbrellas with smart electric rotation and lighting has seen its exports grow by over 50 percent this year, reaching over 50 countries and regions.

Official data clearly confirms this trend. In the first half of 2025, exports of high-technology products climbed 9.2 percent year on year, marking nine consecutive months of growth. Notably, the share of indigenous brands within these high-tech exports has risen to 32.4 percent, a testament to growing domestic innovation.

"China's manufacturing is overcoming key technological hurdles and making a significant leap up the global value chain," said Liu Xiangdong, a researcher with the China Center for International Economic Exchanges. Liu noted that the rise of products like electric vehicles, advanced ships, and industrial robots has reshaped the country's export competitiveness.

Companies are also actively charting new courses to navigate challenges. "Waiting is not an option. We have to proactively find new shipping lanes," said Niu Liqun, chairman of a robotics company in north China's Shanxi Province. Faced with external pressures, Niu's firm successfully expanded into European and emerging markets, with orders now booked through the fourth quarter.

This diversification is a nationwide trend. In 2024, trade with Belt and Road countries exceeded 50 percent of China's total. In the first half of 2025, the country recorded trade growth with more than 190 countries and regions. Meanwhile, new business models have become a vital engine for growth, with the value of cross-border e-commerce in 2024 surging 67 percent compared to 2020.

This dual focus on innovation and diversification is clearly paying off. The results are evident in the performance of trade hubs like Zhejiang Province, which contributed 19.8 percent to the country's entire export growth in the first half of 2025.

Confidence in this new, innovation-driven model of trade is palpable. Back in Yiwu, a new global digital trade center is set to open in October 2025. When just over 900 commercial spaces were put up for tender in one section, more than 19,000 merchants applied, a clear sign of the fierce momentum behind China's next chapter in global trade. ■