2024 In-depth Report on Chinese Enterprises' Export Value: Status, Drivers, Challenges, and Recommendations

Current Status

• China's total exports in 2024 reached approximately $3.5 trillion, a 6% year-on-year increase, ranking first globally for the eighth consecutive year.
• Electromechanical products accounted for 59% of exports, with new energy vehicle exports surging 35% to 1.8 million units.
• Exports to ASEAN grew 12%, raising its share to 16%; exports to the US fell 5% due to tariff impacts.

Drivers

• Technological Innovation: The “new three” (solar, lithium batteries, EVs) exports grew over 30%, driven by enhanced technological competitiveness.
• Policy Support: RCEP implementation and expanded free trade zones reduced tariff barriers; export tax rebates were optimized.
• Global Demand: Green energy transition spurred demand for new energy equipment; Western inflation pushed substitution with cost-effective Chinese goods.

Challenges

• Trade Frictions: US Section 301 tariffs, EU anti-subsidy investigations, and tariff hikes by India.
• Supply Chain Relocation: Labor-intensive industries shifting to Vietnam and India, affecting mid-to-low-end exports.
• Compliance Costs: Carbon tariffs (CBAM) and data security regulations increased certification and adjustment expenses for enterprises.

Recommendations

• Localization: Set up assembly plants and R&D centers in target markets to mitigate tariffs and logistics risks.
• Brand Upgrade: Transition from OEM to ODM/OBM to raise brand premiums, e.g., BYD in Southeast Asia.
• Market Diversification: Deepen presence in Belt and Road countries and expand into Latin America and Africa.
• Digital Empowerment: Leverage cross-border e-commerce platforms (Temu, SHEIN) for direct-to-consumer access and optimized supply chain responsiveness.