China stands as the world’s second-largest economy and its leading exporter, playing a pivotal role in driving global growth and development. Engaging in trade with China presents numerous advantages and opportunities for nations aiming to expand their international trade, diversify their market presence, and acquire access to new technologies. Axis Group International has gathered and analyzed data to evaluate China’s role and future trajectory within the global economic and trade arena. This analysis includes a special focus on intra-BRICS trade and investments, as highlighted in the feature section of the report Trade with China: A Strategic Choice for Growth and Development.

Key Highlights

In 2022, China’s GDP growth was limited to 3% due to the severe restrictions of its zero-COVID policy, impacting travel and business operations nationwide. However, in 2023, the country achieved a notable recovery with a GDP growth of 5.2%, reinforcing its position as the growth engine of the global economy. As the world’s foremost exporter and the second-largest importer, China plays a significant role in shaping global trade dynamics.

China’s total trade volume reached USD 6.3 trillion in 2022, with exports at USD 3.6 trillion and imports at USD 2.7 trillion, respectively. China’s final consumption expenditure made up 54% of its GDP in 2021 which reflects its growing retail sector and increasing consumer confidence in the economy. China’s shift from low-cost to high-value manufacturing, will challenge established players but also open doors for other emerging countries to fill the gap. The rise of e-commerce, fintech, and the shared economy will bring vast prospects for China, but implementation costs must be carefully considered.

China’s expanding global influence is further evidenced by its assertive diplomatic strategies and initiatives such as the Belt and Road. Engaging effectively with China requires a nuanced, multi-faceted approach that acknowledges its various roles—as a partner, financier, competitor, influencer, and leader.

In industries where China excels, businesses should explore sourcing higher-end solutions and technology, leveraging the country’s capabilities But, maintaining a comprehensive risk management strategy is crucial for identifying industry clusters, conducting supplier health assessments, and staying ahead of changes in the supply chain landscape.

To tap into the vast Chinese consumer market, companies must craft sales strategies that combine both online and offline channels. Identifying key sectors and forging relationships with the right local partners, underpinned by thorough due diligence, are essential steps for international brands aiming for success in China.

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