BEIJING: China’s foreign trade will continue its quality upgrade in the second half of the year, bolstered by its industrial chain advantages, robust innovation momentum and strong policy support, exporters and market watchers say.

Despite a complex and challenging external environment, the accelerated cultivation of new quality productive forces and further release of trade stabilisation policy effects are expected to provide a good foundation for sustaining export growth through the year, they added.

China set a record for foreign trade in the first half, achieving a year-on-year increase of 6.1%, reaching 21.17 trillion yuan (US$2.9 trillion), while its exports surged 6.9% on a yearly basis to 12.13 trillion yuan, data from the General Administration of Customs showed.

Developed countries are in the process of shifting from service spending to increased demand for goods, said Wei Hao, deputy dean of the Business School of Beijing Normal University.

This will support China’s exports in the second half, Wei added.

Moreover, the global upward cycle in technology will continue to benefit exports of China’s semiconductor, mechanical and electrical products.

This will create structural growth potential for the country’s exports this year, he said.

Manufacturers’ exports of mechanical and electrical products - including automobiles, smartphones, automatic data processing equipment and integrated circuits - amounted to 7.14 trillion yuan between January and June, surging 8.2% year-on-year and accounting for 58.9% of the total value of the nation’s exports.

This underscores China’s ongoing efforts in scientific and technological innovation, industrial upgrading and brand building in overseas markets, said Kang Ren, vice-president of Naipu Mining Machinery Co Ltd, a Shangrao, Jiangxi province-based mining equipment manufacturer.

Thanks to the tangible Belt and Road Initiative cooperation and the company’s continued expansion in emerging markets, including Serbia, Kazakhstan, Peru and Indonesia, Naipu Mining Machinery’s overseas revenue surpassed domestic revenue for the first time in the first half.

“At present, we have 600 million yuan worth of orders lined up for production, with schedules extending into 2025.

“Our workshops are operating daily to meet these deadlines,” said Kang, adding that the company had established factories in Africa and South America, further cutting production costs and reaching more clients.

Naipu Mining Machinery’s exports reached 320 million yuan during the January to June period, marking a year-on-year increase of 200%, the highest growth in recent years, data from Nanchang Customs showed.

 - China Daily