China’s cross-border e-commerce grows by 10.8 per cent last year

Cross-border e-commerce in China recorded a growth of 10.8 per cent in 2024, according to data released by the Chinese Ministry of Commerce.

China Central Television (CCTV) reported that the country’s total goods trade reached 43.85 trillion yuan (approximately $6.16 trillion), marking a 5 per cent increase compared to the previous year.

The ministry highlighted that imports achieved a record growth of 2.3 per cent, reinforcing China’s position as the world’s second-largest importer for the 16th consecutive year. The number of companies engaged in foreign trade reached around 700,000.

Meng Yue, Deputy Director of the Department of Foreign Trade at the ministry, stated during a press conference in Beijing that cross-border e-commerce contributed 6 per cent to China’s total foreign trade. He added that trade with countries under the Belt and Road Initiative represented 50.3 per cent of China’s total foreign trade.

China contributed 20.3 per cent to global import growth during the first three quarters of 2024, supporting the recovery of the global economy.

China’s logistics sector expanded at a steady pace in November, offering the latest sign that domestic demand is picking up and the country’s economic recovery is gaining further momentum, analysts said.

According to China Daily, the logistics performance index stood at 52.8 per cent last month, representing an increase of 0.2 percentage points compared to October, based on data released earlier this month by the China Federation of Logistics and Purchasing.

The index tracks business volumes, new orders, employment, inventory turnover and equipment utility rates in the sector. A reading above 50 indicates expansion, while one below points to contraction.

China’s logistics sector has sustained a robust expansion in the fourth quarter, driven by strengthening industrial upgrades and increased consumer demand, said Hu Han, an analyst with the China Logistics Information Centre.

Hu added that key drivers behind the expansion include rising demand for communication equipment, electrical machinery, furniture and home appliances, agricultural and sideline products, and new energy vehicles.

Over the past months, Chinese policymakers have put forward a holistic set of forceful policies, which includes fiscal, monetary and property market measures, aimed at giving a much-needed boost to anchor market sentiment and strengthen domestic consumption.

Wen Bin, Chief Economist at China Minsheng Bank, said the broad-based increase in logistics activity signals that the potent policy package has strengthened the momentum of China’s economic recovery, with the manufacturing and consumer sectors regaining their footing after a challenging period.

The seasonal pickup in energy and raw material consumption has also boosted logistics services.

The upbeat logistics data aligns with other recent economic indicators, including a rebound in industrial production, stabilising consumer spending and increased infrastructure investment.

Data from the National Bureau of Statistics showed that China’s purchasing managers index for the manufacturing sector — a main gauge of factory activity — came in at 50.3 last month, up from 50 in October. The November figure marked the second straight month that the manufacturing PMI has remained in expansion, signalling a sustained recovery in the industrial sector.

According to a report from Zheshang Securities, China’s total retail sales of consumer goods are expected to grow by 4.5 percent year-on-year in November, signalling a strengthening of consumer demand in the world’s second-largest economy.

Meanwhile China’s manufacturing sector continued its recovery in December, with the purchasing managers’ index (PMI) holding steady at 50.1 per cent, marking three consecutive months in the expansion zone, data showed.

According to China Central Television (CCTV), the China Federation of Logistics and Purchasing (CFLP), in collaboration with the National Bureau of Statistics’ Service Survey Centre, announced that the momentum of economic recovery continued into December. This positive trend is supported by the combined effects of macroeconomic policies.

The implementation of the existing policies, alongside a new set of stimulus measures, has accelerated the recovery of market demand.

The New Orders Index rose to 51 per cent, up 0.2 percentage points from the previous month, marking its fourth consecutive month of growth.

Exports also showed steady improvement, with the New Export Orders Index at 48.3 per cent, up 0.2 percentage points from the previous month, rising for the second month in a row.