Continuous Rapid Growth Of Foreign Trade Lays The Foundation For Annual Growth

The latest data released by the General Administration of Customs shows that foreign trade imports and exports reached a new high in May, continuing to show a trend of rapid growth. The achievement is mainly due to the competitiveness of "Made in China" and the gradual increase in external demand, coupled with the policy dividends of stabilizing foreign trade and opening up, and the low base contribution from the outbreak of the epidemic in the first half of last year.

Specifically, in U.S. dollars, my country’s total import and export value in May 2021 was US$482.31 billion, a year-on-year increase of 38.9% and a month-on-month decrease of 0.6%. The total export value was US$263.92 billion and the total import value was US$218.38 billion, respectively. Year-on-year growth of 30.1% and 51.2%. The foreign trade balance was US$45.54 billion, a year-on-year decrease of 27.6%.

　　 First, the export growth rate has declined slightly, but it still maintains rapid growth, which is in line with market expectations. Export growth has been maintained at a high speed in two aspects. The first is the continuous recovery of traditional overseas market demand and the continuous growth of overseas orders. At the same time, the epidemic in Europe and the United States has eased and the economy has recovered. However, the misalignment of supply and demand has further supported the maintenance of high growth in China's exports; The expansion of emerging market countries has achieved initial results, and exports to emerging market countries have continued to grow. However, exports of products related to epidemic prevention declined sharply in May, which may be due to external decline and increased competition.

　　Second, imports have grown substantially and rapidly, resulting in a year-on-year decrease of 27.6% in the trade surplus. The increase in imports in May was mainly due to the continuous increase in international bulk commodity prices, and the increase in total imports of non-ferrous metals, crude oil and other bulk commodities far exceeded the increase in the volume of imports. The increase in imports of soybeans and edible vegetable oil is mainly due to the strong demand in the domestic market. At the same time, in order to maintain food security, the import inventory has been increased.

　　 Third, the total volume of imports and exports to major trading partner countries increased rapidly and positively, with an average year-on-year increase of 43% in total trade volume. The status of major trading partners and the growth rate of trade have not changed much, but trade with emerging economies has increased significantly. The top economies in terms of total import and export volume are still ASEAN (US$72.132 billion), the European Union (US$67.162.8 billion), the United States (US$57.993.5 billion), Japan (US$30.758 billion), and South Korea (US$29.631 billion). It is worth noting that among the trading partners with the largest increase in total imports and exports in May, emerging economies are very prominent, such as South Africa (136%), India (105%), the Philippines (81%), and Brazil (74%). The easing of bilateral relations between China and India and the spread of the domestic epidemic in India have resulted in the total trade volume with India exceeding the value of the same period in previous years for many consecutive months.