China is no longer a global trading power, what does it mean for the world to change like this?

Mondo Social Updated on 2024-03-05

Over the past three years, the world has been covered by changes and challenges. The aftermath of the pandemic has not subsided, the global economic recovery is faltering, geopolitical conflicts are intensifying, and the problems of global governance are emerging one after another, and human society is standing at a crossroads full of uncertainties.

In this surging wave of change, China's foreign trade has also been under unprecedented pressure. According to the data released by the General Administration of Customs, the total import and export value of China's goods in 2022 will be as high as 4207 trillion yuan, a year-on-year increase of 77%。While this growth rate is higher than the global average, it is the lowest in nearly a decade.

Surprisingly, China's long-standing status as the world's No. 1 cargo country was taken away by another country in 2022. So who exactly is this "dark horse"? How does it stand out from this fierce competition? What does this mean for China's foreign trade?

That country is the Netherlands. This small country in northwestern Europe has an area of only 4150,000 square kilometers and a population of just over 17 million. However, the Netherlands, with its huge scale, has become the world's "giant". In 2022, its total import and export volume reached 18 trillion US dollars, second only to China, the United States and Germany, ranking fourth in the world. The reason why the Netherlands has been able to achieve such great success in the field of ** is mainly due to its strong re-export capacity.

Re-export**, in simple terms, is the import of goods and then export to other countries, without substantial processing or transformation. The Netherlands, as the gateway to Europe, has the largest port in the world, the Port of Rotterdam, and is equipped with advanced logistics and warehousing facilities, which are able to efficiently transfer goods from all over the world to all parts of Europe and beyond, thereby making huge profits.

In 2022, the Netherlands' re-exports** amounted to 65 trillion euros, or nearly 60% of its total amount. Petroleum and petroleum products, machinery and electronic equipment, chemicals, pharmaceuticals, etc., are its main entrepot commodities. The Netherlands' entrepot partners** are mainly countries within the European Union, such as Germany, France, etc. This small country, with its unique geographical location and advanced logistics system, has become an important hub in the world.

In the face of the rise of the Netherlands, China's foreign trade must re-examine its own advantages and challenges, and look for new development opportunities. This is an era full of challenges and opportunities, and it is also an era that requires wisdom and courage to embrace change. Belgium and other countries, together with the world's leading giants such as the United States, China, and Russia, are weaving a complex network of the world economy.

Among them, the Netherlands' entrepots** are particularly eye-catching, not only as a strong engine of the Dutch economy, driving huge capital flows, but also creating many jobs. As a rough estimate, the Netherlands' re-exports** directly and indirectly support around 800,000 jobs, accounting for nearly one-tenth of its total employment. This kind of activity allows the Netherlands to stand at the forefront of the global market, observing every fluctuation and change in the world market, so as to flexibly adjust its strategy and policy to adapt to the rapidly changing international market.

Looking at China again, the world's most populous country with a vast land area, its achievements in the field should not be underestimated. In 2022, China's total imports and exports reached a staggering 631 trillion US dollars, although a slight decline, is still much higher than the global average, firmly sitting on the top spot in the world. Behind this achievement is China's strong production and processing capacity, as well as its growing and optimized domestic demand market.

China's first-class structure is undergoing profound changes, and the situation dominated by labor-intensive products in the past is gradually changing, replaced by high-tech products, high added value, environmental protection and low-carbon products. According to the General Administration of Customs, in 2022, industrial products dominated China's exports, reaching 941%。Among them, the export of mechanical and electrical products and high-tech products accounted for 592% and 321%, all setting a new historical record. At the same time, China is also actively increasing imports of important commodities such as raw materials, energy, and food to meet domestic production and consumption needs.

In terms of partners, China is also constantly expanding and deepening cooperation. In 2022, China's share with major partners such as ASEAN, the European Union, and the United States will reach 652 trillion dollars, 565 trillion dollars and 505 trillion US dollars, respectively, accounted for China's total **. 4% and 12%. ASEAN has been China's largest partner for three consecutive years, with a growth rate of 15%. In addition, China is also actively exploring emerging markets, and has established close relations with countries along the "Belt and Road" and RCEP member countries to jointly promote global prosperity and development.

With the help of Africa and other countries, China's ** has shown a significant growth trend, and this achievement has largely promoted the progress of China's ** diversity and balance. The achievement of this achievement is undoubtedly due to our continuous improvement of first-class policies and systems.

In 2022, we have taken a series of strong measures to stabilize foreign trade, including ensuring the smooth flow of logistics channels, providing fiscal, tax and financial support, encouraging the development of new forms of foreign trade, helping foreign trade enterprises stabilize orders and expand markets, and improving the safety and convenience of foreign trade. At the same time, we actively participate in global and regional cooperation, promote the entry into force and implementation of RCEP, accelerate the negotiation of free agreements with the European Union, Japan, South Korea and other countries, and promote the construction of free pilot zones and Hainan free ports, providing a high-quality environment and conditions for China's opening up and development.

I would like to say that although re-export can improve efficiency and benefits, we also need to pay attention to the risks and costs it may bring, such as the stability of the chain, environmental and social impacts, etc., therefore, we need to strengthen regulation and management to ensure the safety and sustainability of the market.

Production and processing capacity, as our important advantage, can improve the quality and competitiveness, but we also need to pay attention to the urgent need for transformation and upgrading, such as technological innovation, enhance added value, achieve low-carbon environmental protection, etc., which requires us to increase investment and support to promote innovation and development.

The domestic demand market is an important force driving our development, which can improve the balance and stability of the market, but we also need to pay attention to the conditions for expanding and optimizing the domestic demand market, such as consumption upgrading, market opening, and protection of consumer rights and interests, which requires us to strengthen policy and system construction to stimulate the vitality and potential of the market.

Multilateral and regional cooperation is an effective way to improve convenience and cooperation, but we also need to pay attention to the challenges in the process of coordination and consultation, such as rule-making, benefit distribution, dispute settlement, etc., which requires us to strengthen communication and coordination to maintain order and fairness.

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