Ebrius Disputatios

Spectacular growth in China's exports to the US (6.1%) and the EU (4.3%) in 2024, rising to more than double the growth of the US economy and almost 5 times the growth of the economy of the European Union. The trade deficit of both economies with China grows by 8.5% and 14.1% in 2024 to total $590 billion. China's trade surplus with the United States and the European Union is 61.5% of the total Chinese surplus of 963 billion dollars (an amount that almost reaches that of Spain's GDP).

In 2024, China's foreign trade has achieved record figures, with a notable performance in the fourth quarter and December that augurs well for 2025. China's imports and exports grew by 5% year-on-year in 2024 to reach 43 .85 trillion yuan ($5.98 trillion), according to data published by the General Administration of Customs (GAC) of China.

In 2024, China's total exports grew 7.1% year-on-year to reach 25.45 trillion yuan ($3.47 trillion), while imports grew 2.3% to reach 18.39 trillion yuan (2.51 trillion dollars).

The Chinese trade surplus in 2024 has reached 7.06 trillion yuan (almost 1 trillion dollars) and has grown by 22% compared to the previous year.

The key components of Chinese exports have been (1) technology and electronics, which remains the main driver of Chinese exports, with strong demand for semiconductors, solar panels and consumer electronics; (2) electric cars and machinery, which have experienced significant growth, consolidating China as a leader in the transition towards green technologies and sustainable mobility; and (3) consumer goods, including textiles, toys and household appliances, for which demand remained stable, especially in emerging markets.

Trade with the United States and the European Union

Trade between China and the United States in 2024 grew 4.9% year-on-year to 4.90 trillion yuan ($668 billion).

China's exports to the United States in 2024 grew 6.1% to 3.73 trillion yuan ($509 billion), while imports increased 1.2% to 1.16 trillion yuan (158 billion dollars). The North American trade deficit with China in 2024 has grown 8.5% to $350 billion.

The trade relationship between China and the European Union in 2024, despite trade frictions, reached 5.59 trillion yuan ($762 billion), with a growth of 1.6% compared to the previous year.

China's exports to the European Union totaled 3.68 trillion yuan ($501 billion), a year-on-year growth of 4.3% reflecting strong European demand for Chinese products, while Chinese imports from the European Union reached 1.92 trillion yuan ($261 billion), representing a decrease of 3.3% from the previous year. The European Union's trade deficit with China in 2024 has grown by 14.1% to $240 billion.

Exports to the United States and the European Union represent, respectively, 14.7% and 14.4% of total Chinese exports, behind China's first partner, ASEAN (an association of 10 Southeast Asian countries).

The failure of the United States and the European Union in their attempt to weaken Chinese exports is a reflection of the current economic and political complexity. Both Western powers have implemented numerous strategies, from tariffs to technological restrictions, to block China but the results have not been as expected.

China has developed a robust, diversified economic system with a remarkable capacity for adaptation. Its focus on technological development, industrialization and strengthening the internal market has allowed it to overcome the barriers imposed by the West. Furthermore, Chinese companies have proven to be highly competitive, offering products at lower prices and increasing quality.

China's role as “the world's factory” remains fundamental. The global supply chain's dependence on products made in China, from technological components to consumer goods, makes it difficult for the United States and the European Union to replace China as a major supplier. Additionally, the Chinese government has invested significantly in technological innovation, reducing its dependence on foreign technologies. And some Chinese companies have adopted localization strategies, setting up manufacturing plants and operations in foreign countries to circumvent tariffs and restrictions.

Regardless of what the United States and the European Union do, China has strengthened its trade relations with emerging markets, such as Latin America, Africa and Southeast Asia. These countries, seeking economic alternatives outside Western dominance, have welcomed trade with China, ensuring its continuity despite sanctions or restrictions in traditional markets.

On the other hand, and although China is the largest exporter in the world in absolute terms, it is not so in comparison to the volume of its GDP. Chinese exports do not reach 20% of its GDP, behind many countries, practically half that of Spain and below the world average. The Western attempt to bankrupt the Chinese economy by blocking its exports has a difficult time; it is neither its weak point nor has it been touched. China's true power is its capacity for economic and technological development and the fact that it has become the largest market on the planet and where practically half of the world's middle class resides.

In any case, this attempt by the United States and the European Union to weaken Chinese exports highlights the limitations of coercive strategies in an interconnected world. Both Western blocs should rethink their policies and reconsider the need for cooperation and honest competition in a global system that, inevitably, already includes China as a main actor.