Author: Yao Jiali

Publisher: Shenzhen Economic Daily  

Date: October 25, 2024

The first phase of the 136th Canton Fair has recently concluded with impressive results as Guangdong's foreign trade data for the first three quarters of this year has been released. According to the Guangdong Branch of the General Administration of Customs, the province's total imports and exports reached 6.75 trillion yuan, marking an 11.1% year-on-year growth. Notably, exports alone amounted to 4.39 trillion yuan (up 9.1%), while imports reached 2.36 trillion yuan, reflecting a substantial increase of 15%. This remarkable performance consolidates Guangdong's position as the largest contributor to China’s foreign trade, accounting for 20.9% of the national total.

(Suidong Customs officers efficiently inspected and cleared vehicles in the area. Photo by He Yinghong.)

Positive Growth Amid Global Challenges

Guangdong’s robust foreign trade performance highlights its vital role as the main force in China's overall trade landscape. The region's growth rate exceeds the national average by 5.8 percentage points, contributing 41.5% to the national trade growth. Liu Xinrong, an Associate Professor at Jinan University, underscores that Guangdong's strong industrial and supply chain systems, coupled with robust production capacities, have bolstered its foreign trade resilience.

Private Sector Driving Trade Performance

A noteworthy aspect of this year's data is the impressive growth of private enterprises in Guangdong, which saw a 17.1% increase in import and export value—from 4.3 trillion yuan to a significant portion of the province's total trade. This performance reflects enhancements in the business environment and the expansion of export-oriented private firms. Additionally, the notable rise in imports, especially integrated circuits which accounted for 34.8% of total import value, suggests that domestic consumption policies are stimulating internal demand for international goods.

(Workers from Dongguan Sanyi Electronic Technology Co., Ltd. are assembling game controllers. Photo by Pu Xuan)

Evolving Trade Landscape

The trends observed in Guangdong's foreign trade also reflect broader shifts in global commerce. Over the past 75 years, Guangdong's trade has evolved dramatically, increasing from a mere 1.59 billion USD in 1978 to 1.18 trillion USD in 2023—a staggering growth of 741.1%. The province has consistently ranked first in national foreign trade for 38 consecutive years and has expanded its trading partnerships from 145 countries and regions to over 250.

ASEAN has now emerged as Guangdong's largest trading partner, highlighting the strategic impact of initiatives like RCEP (Regional Comprehensive Economic Partnership) on regional supply chain cooperation. The Canton Fair, with increased participation from merchants in ASEAN and other emerging markets, is pivotal in attracting international business and fostering trade relations.

Strengthening Trade through Innovation

The annual Canton Fair, held from October 15 to 19, showcased cutting-edge products, including automated logistics robots and advanced machinery, attracting over 130,000 overseas buyers from 211 countries—a 4.6% increase from previous years. This participation underscores the growing interest in Guangdong’s innovative products, with specific increases from regions involved in the Belt and Road Initiative, among others.

Outlook for Continued Growth

The diversification of Guangdong's foreign trade markets and its burgeoning relationships with emerging economies position it well for sustained growth. Liu Xinrong asserts that this evolving landscape minimizes reliance on a single market, enhancing resilience against international market fluctuations. Guangdong's transition from traditional labor-intensive exports to high-tech and capital-intensive products further reinforces its competitiveness on the global stage.

In summary, Guangdong's impressive foreign trade results not only signify robust economic growth but also reflect strategic developments in industrial cooperation and market expansion. The partnership and trade relationships cultivated through events like the Canton Fair are crucial to Guangdong's economic trajectory as it continues to strengthen its role in the global supply chain.