China Daily:

In recent years, we have observed changes in the structure of China's export products. How does the Ministry of Commerce view the issue of trade structure, and what is the outlook for trade growth this year? Thank you.

Li Xingqian:

Thank you for your questions. In recent years, the structure of China's exports has been undergoing optimization and upgrading. In terms of product structure, there has been positive momentum in exporting high-tech, high value-added, and environmentally friendly products that are driving green and low-carbon transformation. Taking the "new trio" of electric vehicles, lithium-ion batteries, and photovoltaic products as examples, their combined exports grew by 88.4% in 2022 and increased by 27.6% in 2023, surpassing 1 trillion yuan in export scale. At the same time, we see many Chinese foreign trade enterprises focusing on enhancing their independent research and development capabilities and advancing digitalization, smart transformation, and green transformation. This has led to the formation of an innovation advantage in China's manufacturing industry.

From the perspective of trade modes, the proportion of China's general trade exports has continued to increase, reaching 64.6% in 2023. This reflects the ongoing enhancement of China's independent development capabilities in foreign trade. The processing trade is transitioning from traditional manufacturing processes to higher value-added activities like design and maintenance. In 2023, high-tech products accounted for 53% of China's total exports in the processing trade.

From the perspective of market distribution, our trading partners have become more diverse. In 2023, the proportion of China's exports to emerging markets rose to 55.3%. We have also strengthened trade ties with countries participating in the Belt and Road Initiative. In the first quarter of this year, the proportion of exports to these countries further increased to 46.7%.

Considering the export performance of the first quarter, we see three sectors with innovative vitality and potential for sustained growth.

First, the foundation for exports of complete sets of equipment is robust. Chinese industries, such as automotive and equipment manufacturing, have consolidated innovative achievements along both long and complete industrial chains. If some components or functional systems are considered individually, they are full of creativity and technological sophistication. I'll briefly mention two examples: in-car voice systems in automobiles are rapidly advancing toward the domain of AI. Meanwhile, forklifts commonly used in factories and warehouse logistics are progressively becoming electrified and unmanned, undergoing iterative upgrades.

Second, the demand for smart products is growing. Chinese export products increasingly employ special and sophisticated technologies to produce novel and unique products, delving deeper into segmented fields. Smart products, such as robots, are favored by consumers. In the household appliance sector, there has been an emergence of floor-cleaning robots, pool-cleaning robots, lawn-mowing robots, and high-rise building window-cleaning robots in response to demand, each featuring its own advanced technology. In the field of industrial robots, China is also an important exporter and application market. According to statistics from the International Federation of Robotics, the annual average growth rate of robot installations in China from 2017 to 2022 was 13%. Customs data indicate that China's industrial robot exports increased by 86.4% in 2023.

Third, low-carbon, energy-saving, and environmentally friendly products are highly popular. Currently, environmentally friendly food trays and straws made from biodegradable materials have replaced disposable plastic products and become the market's mainstream choice. Biodegradable tableware made from bagasse is well-received in exports, resulting in bagasse becoming more expensive than sugarcane. In some areas, such as air-source heat pump equipment, which is more energy-efficient, it can save energy by 75% compared to traditional electric heating or coal-fired boilers. These products are selling well in the European market. New textile fabrics that can be dyed without water save water and energy in the dyeing process and do not emit wastewater, which customers deeply appreciate.

At the same time, we need to recognize that traditional labor-intensive products still hold competitive advantages. In the first quarter, China's export of labor-intensive products increased by 9.1% year on year; among them, exports of textiles and garments, plastic products, and furniture and parts grew by 5.4%, 14%, and 23.5%, respectively. "Made in China" is currently evolving into "Created in China." New export growth poles will continue to emerge, and we are confident in achieving this year's goals of steadily increasing the volume and enhancing the quality of foreign trade. Thank you.