Hong Kong holds key ‘accelerator’ role as China’s trade strategy evolves

China’s trade has displayed remarkable resilience this year. Its goods trade expanded 4 per cent year on year for the nine months so far in yuan terms, according to customs data. Quarterly growth accelerated from 1.3 per cent at the start of the year, to 4.5 per cent by midyear and finally to 6 per cent. This steady momentum reflects both the robustness of demand and continued refinement of China’s trade structure.

But the regional performance has been uneven. Exports to the United States fell 27 per cent year on year in September under the weight of tariffs, continuing August’s decline. The European market, however, provided a counterbalance. Chinese exports to the European Union rose 14.2 per cent in September, likely supported by an improvement in the euro area manufacturing purchasing managers’ index (PMI), an indicator of economic recovery.

Emerging markets offered further impetus. Exports to Africa, for instance, surged 56.4 per cent in September, while shipments to the Association of Southeast Asian Nations (Asean) region remained buoyant, rising 15.6 per cent. These figures underscore the growing importance of diversification in China’s foreign trade strategy.