By dollar value, China’s top 5 exports are:
Electrical machinery and equipment
Machinery, including computers
Furniture, bedding, lighting, signs and prefab buildings
Plastics and plastic articles
Optical, technical and medical apparatus.
China's top five imports by dollar value
Interestingly, like its exports, China’s import list is also dominated by electronic equipment and machinery.
While the country dominates the production of many mass-produced items, it still relies on trading partners for a number of high-tech industries, such as aircraft and medical devices. China also imports huge volumes of oil and other mineral fuels to keep itself running, as well as metal and mineral ores, which are used as raw materials for its factories.
By dollar value, China’s top 5 imports are:
Electrical machinery and equipment
Mineral fuels, including oil
Machinery including computers
Ores, slag and ash
Optical, technical and medical apparatus.
Where do China’s imports come from, and where do its exports go?
The US/North America
Despite the underlying animosity between the two nations, the US and China do a lot of business with each other. In fact, the US is China’s best single customer - buying almost $400 billion in goods in 2020, and selling $110 billion in return.
US consumers and businesses are significant contributors to this imbalance, with smartphones, computers, furniture, and TVs among China’s largest exports to the US. By contrast, the major US exports are centred on industries where the country has a technological edge — like aircraft and integrated circuits, as well as commodities like soybeans and crude oil.
Asia
Japan and South Korea are China’s most important trading partners in Asia. The country also does substantial trade with nations such as Singapore, Malaysia and Taiwan. Almost half of China’s exports go to Asian nations, with a wide range of goods including everything from air conditioners to t-shirts. Smartphones were at the top of the list for a number of nations in the region. In 2020, the ASEAN bloc of south-east nations even overtook Europe for the first time in imports from China.
China’s list of imports again included a mix of advanced technological goods — mainly coming from Japan and South Korea — and raw commodities, with Vietnam historically accounting for almost half of all China’s rice imports.
Europe
China’s major trading partners in Europe include Germany, the Netherlands and the UK. Once again, most of this trade is in manufactured goods, especially vehicles and machinery, which top both the import and export lists between the European Union and China.
Other
In terms of raw commodities, China’s biggest trading partners are Russia, which is the top supplier of oil to the country, and Australia, which dominates in terms of both high quality coal and iron ore.
How will China’s imports and exports change in the future?
Four decades of economic growth have transformed China from an agrarian society to an increasingly urbanised one, pulling millions out of poverty along the way. As its middle class continues to grow, experts expect China’s economy to become less dependent on manufacturing and more on domestic consumption.
Ultimately, that should lead to a greater number of consumer goods being imported into China. This trend is already underway, and has been for some time, especially among producers of premium products. High-end fashion houses in Europe and premium wine and spirit producers across the world have reported significant growth in their China sales over the past decade, while producers of meat and dairy products have also benefited.
The shift of focus to consumption may also have an impact on Chinese exports. Following the pattern of other developed economies, there is likely to be an increased focus on high-end manufacturing, while rising wealth and incomes may undermine China’s competitive advantage in lower-value exports like textiles.
Challenges and opportunities for China’s trading partners
China has disrupted the established order of global trade over the past 40 years. First, by becoming the world’s factory and, more recently, by becoming one of its top consumers. That trend is likely to continue as the country’s wealth and influence continue to grow, creating opportunities and challenges for the countries it does business with.
What’s ahead for China’s gold market?
As its economy continues to grow, China is likely to become an increasingly powerful player in the global gold market. Already the world’s largest gold miner and consumer, the country is now working to increase its global influence via the Shanghai Gold Exchange. Meanwhile, its central bank is buying up gold at a fast pace and is expected to continue to do so for some time as it tries to diversify away from its US dollar holdings.
As with everything China does, global investors are watching closely.
