China is the world’s largest exporter; in 2023, Chinese exports amounted to $3.38 trillion. This starkly contrasts to the early 2000s when China’s exports were barely $300 billion. Chinese exports crossed the $3 trillion mark within twenty years, showing rapid growth.
China’s top exports included telephones, crude petroleum, iron ore, broadcasting equipment, integrated circuits, computers, cars, semiconductors, and electric batteries. Keep reading to know which countries are China’s most important export partners.
ASEAN
ASEAN countries took over the U.S. and E.U. as China’s most important export partners. ASEAN is a group of ten countries: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
In 2023, ASEAN countries received $523.7 billion worth of imports from China, becoming China’s biggest and most important export partners, beating the U.S. and Russia.
China has been ASEAN’s largest trading partner since 2009; China’s cost competitiveness and industrial capabilities make it an attractive source for ASEAN countries to source manufactured goods and components. Trade agreements like the ASEAN-China Free Trade Agreement have made it easier to export from China.
European Union (E.U.)
The European Union is a political and economic union of twenty-seven countries, including major economic power-houses like Germany and France. The EU is the second largest importer of China’s products. In 2023, Chinese exports to the E.U. amounted to $501.2 billion. China mainly exports electronic equipment and machinery to the E.U.
The E.U.’s reliance on Chinese exports has increased by ninefolds in twenty years, but the relationship is also facing growing political and economic tensions. The E.U. has raised concerns over issues like market access, intellectual property rights, and the role of state-owned enterprises in China. One major example of tension between the countries is E.U.’s 38% tariffs on Chinese E.V., which is being condemned by China. All these contributed to a decrease in Chinese exports by 10.2% in 2023 compared to 2022.
United States
China’s exports to the U.S. amount to $500.3 billion, making it the third largest and one of the most important export partners of China. The top U.S. imports from China included computer and electronic products, miscellaneous manufactured commodities, and electrical equipment.
In the early years after China joined the WTO in 2001, U.S.-China trade exploded, with China becoming one of the largest export markets for U.S. goods and services. This trade brought lower prices to U.S. consumers and higher profits for American corporations.
However, in recent years, U.S. investment in China has faced increasing challenges. Despite Chinese exports amounting to $500.3 billion, they are still less compared to the previous years and China lost its position as the top U.S. exporter for the first time in seventeen years. Chinese exports to the U.S. declined by 13.1% in 2023 compared to 2022
Hong Kong
Hong Kong is a special administrative region of China with its own currency, judiciary, and parliament. Hong Kong has political autonomy except in matters of foreign policy and defense, which are dictated by China. The Chinese call this administration “one country, two systems.”
Hong Kong is an important export partner of China; in 2023, China’s exports to the region amounted to $274.6 billion. The top exports included integrated circuits, broadcasting equipment, office machine parts, gold, and jewelry. Electronic equipment dominates the share of exports, amounting to $151.03 billion.
Over the past five years, China’s exports to Hong Kong have grown by 40.7% annually, and one of the major reasons for this growth is the implementation of preferential trade policies such as the Closer Economic Partnership Arrangement (CEPA).
Japan
Despite the political tensions between the two countries, China and Japan have a significant amount of trade going on; Chinese exports to Japan amount to $157.5 billion. The top exports included telephones, computers, video and card games, motor vehicle parts, and electrical transformers, with electronic equipment alone amounting to $39.36 billion. Since 1995, China’s exports to Japan have increased at an annual rate of 34.7%, showing Japan’s significant dependence on Chinese exports.
Trade relations between China and Japan are often affected by political tensions between the countries. China has criticized Japan for never addressing its colonial crimes, while Japan has criticized China’s military tactics. There are also other geopolitical issues, like disputes in the East China Sea and the ownership of Senkaku islands. While China remains Japan’s largest trade partner, exports showed an 8.4% decline from 2022.
South Korea
South Korea remains an important export partner of China; in 2023, Chinese exports to South Korea amounted to $149 billion. Major exports include electrical machinery, mechanical appliances, organic and inorganic chemicals, and iron and steel. Electronic equipment, including semiconductors and telecommunications devices, remained the top export, amounting to $45.9 billion, followed by machinery, nuclear reactors, and boilers, amounting to $14.93 billion.
Despite the high volume of exports, Chinese exports to South Korea fell by 8%, with South Korea recording its first trade deficit with China in almost 31 years. Geopolitical tensions and events like the 2017 THAAD controversy and supply chain disruptions during the pandemic have contributed to the decline in Chinese exports to South Korea. Chinese exports to South Korea declined by 7.2% in 2023 compared to 2022.
India
China and India have a complicated relationship, both political and economic. Geopolitical tensions run high between these two countries, affecting their trade relations. Despite the tensions, India remains an important export partner of China, with Chinese exports to India amounting to $117.7 billion in 2023. The top exports include telephones, computers, integrated circuits, flat panel displays, and electric batteries. Electronic equipment dominates the share of exports, amounting to $37.78 billion, followed by machinery, nuclear reactors, and boilers, $22.23 billion.
While Chinese exports to India have continued to rise, political tensions and border disputes between the countries have been affecting the trade, and India is actively working to reduce its trade deficit with China by diversifying its export markets.
Russia
Russia has become an important export partner of China in recent years; Chinese exports to Russia increased by 46.9% in 2023 compared to 2022, amounting to $111 billion. Top exports to Russia included cars, computers, telephones, delivery trucks, and large construction vehicles. Unlike other countries where the major exports were electronic equipment, major Chinese exports to Russia were machinery, nuclear reactors, and boilers, amounting to $25.22 billion, closely followed by vehicles, $22.52 billion.
China has become a crucial supplier of industrial goods, consumer products, and technology to Russia in the face of Western sanctions. This trade relationship has deepened as Russia has become increasingly isolated from the global economy following the Russia-Ukraine war.