Summary:

In recent years, the Chinese government has promoted an economic model centered on “domestic circulation” while fostering mutual reinforcement between domestic and international circulation. Policy support has increasingly favored local enterprises, particularly in enhancing self-sufficiency in technology and manufacturing.

Against this backdrop, the share of imports and exports by foreign-invested enterprises (FIEs) in China’s total trade has continued to decline, signaling a more significant role for domestic firms in international trade and a reduced reliance on foreign investment.

At the same time, this trend also reflects China’s shift toward higher value-added industries, with domestic enterprises playing an increasingly significant role in global trade.

FIEs in China are adapting their business strategies, transitioning from a purely export-driven approach to a more localized and market-oriented development path.

Highlights:

1. The share of imports and exports by FIEs in China’s total trade has steadily declined from 2008 to 2023.

2. Industrial upgrading and technological innovation have enhanced the competitiveness of Chinese domestic enterprises in the international market, further reducing reliance on FIEs.

3. FIEs in China are increasingly focusing on the domestic market instead of using China as a transit hub in the global supply chain.

Article By ZHANG, Yuqing

Graphic By YAN, Bowen