Since the beginning of this year, China's foreign trade and exports have achieved a comprehensive recovery. According to the latest data, in the first 11 months of this year, China's total exports reached 216 trillion yuan, a year-on-year increase of 03%, * surplus of more than 52 trillion yuan. And in November, China's exports reached 21 trillion yuan, a year-on-year increase of 17%, * surplus of nearly 500 billion. These data show that China's foreign trade exports are gradually recovering and growing.
However, we need to note that the main reason for the growth of foreign trade exports this year is the relatively low base of exports last year. At the same time, the weakness of the US and European economies is also a risk factor for weaker external demand. The PMI data in Europe and the United States are both below the withering line, and the economic recovery is slow. Therefore, we need to remain vigilant to the external environment in order to deal with potential uncertainties.
Among this year's partners, we can see some notable changes. First of all, China's largest partner is ASEAN. In the first 11 months of this year, the value of China and ASEAN reached US$825.5 billion, its exports reached US$443.5 billion, and imports reached US$352 billion, a decrease of 5% compared with the same period last year5%。This shows that the relationship between China and ASEAN is still close, and the ASEAN region is still an important export market and procurement place for China.
Secondly, the EU is China's second largest partner. In the first 11 months of this year, the value between China and the European Union reached 716.3 billion US dollars, their exports reached 458.5 billion US dollars, and the import value reached 257.8 billion US dollars. However, it should be noted that exports to the EU have fallen by 11% this year. As an important partner, the instability of the EU's economic situation has had a certain impact on China's exports.
The United States, on the other hand, has been relegated to China's third-largest partner. In the first 11 months of this year, the amount of China and the United States reached 607 billion US dollars, and exports to the United States reached 457.7 billion US dollars, a year-on-year decrease of 138%。Imports from the United States were $149.2 billion, down 7% year-on-year. This means that China has fallen from the first largest importer of the United States to the third largest importer.
Recent data shows that the top two importers to the U.S. are Mexico and Canada. From January to May this year, U.S. imports from Mexico reached $195 billion and imports from Canada reached $176 billion. Exports to the United States from both countries continue to grow.
Why do Mexico and Canada export more to the U.S. than China?The reasons for this are twofold. On the one hand, Mexico and Canada are geographically adjacent to the United States, which has become the first choice for the United States to promote "entrepot **". On the other hand, the United States signed the "USMCA Agreement" with Mexico and Canada, which eliminated ** restrictions and tariffs and promoted ** facilitation. This makes the U.S. more inclined to import goods from Mexico and Canada.
In fact, making Mexico and Canada the top two importers to the U.S. is also a historical process. China has long been the number one partner of the United States, and this situation lasted until 2018, when the United States provoked a war and imposed restrictions and tariffs on Chinese goods. Subsequently, the bilateral amount between China and the United States declined significantly. In addition, after the outbreak of the new crown epidemic in 2020, the United States began to import a large number of Chinese goods in order to purchase a large number of medical supplies, and China once again became the largest partner of the United States. However, the United States believes that it should reduce its dependence on Chinese goods, and has taken the initiative to reduce the amount of imports from China, making China the third largest importer of the United States.
However, a closer look at the data shows that while China has become the third largest importer between China and the United States, the amount between China and Mexico has reached $100 billion, of which $77.5 billion has been exported to Mexico. In fact, a large proportion of Mexico's exports to the U.S. are Chinese exports to Mexico. This means that Mexico plays the role of "entrepot**" between China and the United States, and the United States does not import goods directly from China, but buys a large amount of Chinese-produced goods through Mexico. Mexico thus acted as an "intermediate station" and thus became the number one exporter to the United States.
To sum up, China has achieved a comprehensive recovery in foreign trade and exports, and has maintained close cooperation with ASEAN and the European Union. However, there have been some changes in the relationship with the United States, and China has fallen from the original number one importer to the position of the third largest importer.
Mexico and Canada became the top two importers to the United States, largely due to their location and agreements. Nevertheless, we should not underestimate China's status and potential as a global power. The phenomenon of "entrepots**" between China and Mexico is also a phenomenon worthy of attention, which shows the importance of further strengthening economic and trade cooperation between China and neighboring countries.
Therefore, China needs to continue to develop new partners in foreign trade, improve diversification, and play a greater role in the world system. At the same time, it is necessary to optimize the product structure, improve product quality and added value, and enhance the ability and competitiveness of independent innovation to better respond to the changes in the global situation. Eventually, we will achieve stable and sustained economic development.