China’s Imports, Exports Soar 16.6% in July as RCEP Boosts Trade

08/08/2022    55

The value of China’s imports and exports jumped 16.6 percent in July from the same period a year ago, buoyed by the increase in trade with members of the Regional Comprehensive Economic Partnership, according to the latest data.

China’s trade volume was CNY3.8 trillion (USD562 billion) last month, data from the General Administration of Customs of China showed yesterday. Imports rose 7.4 percent to CNY1.6 trillion, and exports soared 23.9 percent to CNY2.2 trillion.

China’s trade with members of the RCEP, a multilateral trade agreement among the 10 countries of the Association of Southeast Asian Nations, China, Japan, South Korea, Australia, and New Zealand that came into effect on Jan. 1, surged 18.8 percent to CNY1.2 trillion in July from a year earlier, driving the total value of imports and exports up 5.6 percentage points, China Central Television reported, citing Li Kuiwen, head of that Department of Statistics and Analysis of the GACC.

Since it came into force, the RCEP furthered the economic interconnections and trade and investment partnerships in the region, creating a new driving force for the economic recovery and development, Li added.

China’s imports and exports totaled CNY23.6 trillion (USD3.5 trillion) from January to July, up 10.4 percent from the same period last year. ASEAN countries were China’s largest trading partners, as trade rose 13.2 percent to CNY3.5 trillion. The European Union, the US, and South Korea were the second-, third-, and fourth-biggest trade partners, respectively.

Chinese trade authorities issued 56,800 certificates of origin to prove that USD2.7 billion worth of goods were produced in the RCEP region in the first half of 2022, expecting to cut the tariff for companies by over USD40 million, Yicai Global learned from the China Council for the Promotion of International Trade.

The RCEP is the first multilateral trade between China, Japan, and South Korea. Since coming into effect, it buoyed South Korean companies to invest more in China, led to an increase in intermediate goods trade, and boosted the China-South Korea trade, Liu Xiangdong, deputy director of the Economics Research Department at the China Center for International Economic Exchanges, told Yicai Global.

South Korea has advantages in semiconductor chips, electric vehicle batteries, and hydrogen fuel cells, Liu added, noting that the investment and trade of goods from China and South Korea in emerging industries are relatively high, with great added value of products of such industries.

Source: Yicai