Exports from China's southern tech hub have soared due to demand for electric vehicles and a series of deals with countries participating in the Belt & Road Initiative.
Analysts say that Shen Quan's positive trade figures are a good sign for the Chinese economic growth target of about 5% that Beijing has set for this year, as well as an answer to concerns. geopolitical friction as well as restrictions on Western technology exports.
According to published Chinese customs data, in the first two months of the year, the value of goods exported from this city reached 441,4 billion yuan (61,3 billion USD), an increase of 53,1% over the same period. Meanwhile, the value of imported goods increased by 31,9%, to 233,74 billion yuan. The total import and export value increased by 45% compared to last year, reaching more than 675 billion yuan.
Shenzhen is also home to the headquarters of Huawei Technologies, Tencent, electric car company BYD and drone manufacturer DJI - companies on the US Department of Commerce's sanctions list.
The 10-member Association of Southeast Asian Nations (ASEAN) became Shenzhen's largest trading partner, with trade value increasing 58,1% to 106,92 billion yuan. Next are Hong Kong, America, Europe and Taiwan.
Of which, sales to the US increased by 62,4% over the same period, with Europe increasing by 20,9%. For countries participating in the Belt & Road Initiative - a program to connect economies into a trade network with China at the center, the total trade value reached 249,1 billion yuan, an increase of 57,8 % compared to last year.
Peng Peng, executive chairman of the Guangdong Reform Association, a Guangzhou-based think tank, said that "usually growth in exports to ASEAN is accompanied by a decline in production to the US". Therefore, the recovery of this city's exports to the US could strengthen confidence and reduce damage caused by supply chain changes in the short term.
Shenzhen is China's top export city, home to more than 2,01 million enterprises – more than 99% of which are small and medium-sized enterprises. Washington has put several major technology businesses here on an export blacklist, including Huawei, DJI, semiconductor designer Conrad Technology and facial recognition technology provider Cobber.
Through the first two months of the year, Shenzhen's mechanical and electrical exports reached 295,5 billion yuan, an increase of 30,2% over the same period. The trade surplus of this technology center has a significant contribution from BYD - the electric vehicle company exported 36.700 units, an increase of 47,2% compared to the previous year, leading to a boost in sales of related components and materials. .
