The article was first published on Chinadaily on June 17th, 2026.

Wang Chenwei is a research fellow at the Institute of Economic Systems and Management at the National Development and Reform Commission. Wang Haotian is an associate research fellow at the Institute of Economic Systems and Management at the National Development and Reform Commission.

New growth engines highlight the robustness as China enters the transformative 15th Five-Year Plan period

According to the General Administration of Customs, China’s foreign trade reached 20.68 trillion yuan ($3.05 trillion) in the first five months of 2026, marking a year-on-year increase of 15.3 percent. With key economic indicators outperforming expectations, the figures signal a strong start to the 15th Five-Year Plan (2026-30) period, highlighting the steady progress and long-term growth momentum of China’s economy.

Foreign trade has long been a key engine of economic growth. Advancing innovation-driven trade is essential to building a higher-level open economy and promoting high-quality development. Despite pressures from a challenging global environment, China’s foreign trade has remained resilient and continued to reach new highs. Since the beginning of this year, China’s foreign trade has shown four trends.

First, technology-intensive industries have become the backbone of exports. In the first five months of the year, total exports reached 11.91 trillion yuan, up 11.8 percent from a year earlier. Exports of mechanical and electrical products remained the key driver of growth, rising 18.4 percent to 7.58 trillion yuan and accounting for more than 60 percent of total exports. In contrast, exports of labor-intensive products fell 3.1 percent year-on-year to 1.61 trillion yuan.

Second, robust import growth has created new opportunities for international economic cooperation. Data from the General Administration of Customs showed that in the first five months of the year, China’s imports totaled 8.77 trillion yuan, up 20.5 percent year-on-year. Imports of mechanical and electrical products increased by 25.3 percent, while imports of agricultural products also maintained steady growth. These trends suggest that an increasingly open China is responding to both domestic and global demand, while promoting mutually beneficial cooperation and shared development.

Third, private enterprises are leading the growth, recording a total import and export volume of 11.81 trillion yuan in the first five months, an increase of 15.5 percent. Foreign-invested enterprises reached 6.02 trillion yuan, up 15.7 percent, while State-owned enterprises totaled 2.81 trillion yuan, up 14 percent. Private enterprises accounted for more than half of the total trade volume, consolidating their stabilizing role in foreign trade.

Fourth, diversified trading partners and accelerated cooperation with emerging markets are contributing to a more stable and balanced trade structure. In the first five months, trade between China and Southeast Asian nations reached 3.52 trillion yuan, up 16.6 percent year-on-year. Trade with European Union countries totaled 2.53 trillion yuan, up 10.3 percent. Trade with the Belt and Road partner countries reached 10.57 trillion yuan, accounting for more than half of China’s total foreign trade.

Meanwhile, it is important to recognize the risks posed by geopolitical tensions, sluggish global growth and rising trade protectionism. At home, China faces structural challenges, including frictions in the shift toward new growth drivers, relatively weak investment and consumption, insufficient domestic demand, the long-term task of industrial upgrading and risks in key sectors.

Despite these headwinds, China’s economy is expected to remain resilient, supported by robust macroeconomic policies. China’s system of centralized coordination enables it to mobilize resources efficiently and implement both cross-cycle and counter-cyclical policy measures, helping cushion the impact of external shocks. The country’s vast domestic market, comprehensive industrial base and deeply integrated supply chains continue to provide strong structural advantages. Expanding domestic demand and continuous industrial upgrading also underpin China’s long-term economic growth.

Against this positive economic backdrop, China’s foreign trade is poised to stay vibrant. China has steadily expanded and diversified its trade ties across both traditional and emerging markets, enhancing its ability to withstand external shocks. To date, according to the Ministry of Commerce, China has signed 24 free trade agreements with 31 countries and regions, and its free trade partners account for 45 percent of its total goods trade. Trade-facilitating measures, including the granting of 100 percent zero-tariff treatment to African countries with diplomatic relations with China, along with deeper economic engagement with the EU, the Association of Southeast Asian Nations and the Belt and Road partner countries, are expected to create fresh momentum for trade growth.

The technological revolution and industrial transformation are also becoming key engines of foreign trade growth. As emerging industries expand and new business models evolve, Chinese companies are becoming increasingly innovative and more motivated to explore overseas markets. In 2025, the largest gains in exports came from the “new trio” of new energy vehicles, lithium-ion batteries and photovoltaic products. According to the China Association of Automobile Manufacturers, exports of new energy vehicles surged 103.7 percent. The integration of data, technology, application scenarios and hardware is not only accelerating industrial development, but also empowering foreign trade enterprises.

Looking ahead, China should continue strengthening its domestic economy while fostering a more dynamic interplay between domestic and international markets.

First, China should continue pursuing mutually beneficial cooperation to sustain the vitality of foreign trade. This includes steadily expanding a high-standard network of free trade zones and further diversifying international markets to strengthen trade resilience. At the same time, private enterprises should be further empowered as both the backbone of foreign trade and a major source of innovation. By seizing the opportunities presented by new technologies, China can move up the global value chain with more high-tech and high-value-added products, while enhancing private enterprises’ capacity to expand into overseas markets.

Second, China should further coordinate policy measures with market development to unlock the potential of domestic demand. To upgrade consumer spending, targeted measures should be implemented to boost consumption, foster new consumption scenarios and models, and increase financial support for consumer goods trade-in programs. Greater efforts should also be made to cultivate new growth drivers such as cultural tourism, sports events, healthcare and wellness-related consumption. In addition, China should continue promoting a unified national market to create a more favorable business environment.

Third, China should advance high-quality, innovation-driven development to strengthen the foundations of its foreign trade supply chains. This includes implementing the “AI Plus” initiative, fostering new forms of the intelligent economy and enhancing industry chain coordination and digitization. In key sectors, strategic capabilities should be strengthened by increasing investment in research and development of core technologies, equipment and products, thereby improving the resilience of supply chains in critical areas. At the same time, China should further deepen international cooperation on industrial and supply chain development, actively participate in global rule-setting, and contribute to the stable and efficient functioning of global industrial and supply chains.