China sees rapid growth in exports in 2025

Chinese exporters’ shift towards higher-value manufacturing and their sustained focus on innovation will continue to anchor China’s foreign trade growth this year, government officials, manufacturers and experts have said.

As China works to consolidate its position in global industrial chains amid rising geopolitical tensions, Chinese companies’ large-scale production capabilities, innovation strength, industrial upgrades and market diversification moves will keep driving export growth in the second half of the year, they said.

Liang Ming, director of the Institute of International Trade at the Chinese Academy of International Trade and Economic Cooperation, said that the country’s robust industrial ecosystem provides enormous stability for the nation’s foreign trade supply networks.

Data from the General Administration of Customs (GAC) shows that China’s foreign trade grew 2.5% year-on-year to reach 17.94 trillion yuan ($2.5 trillion) in the first five months of 2025.

Lyu Daliang, director of the administration’s department of statistics and analysis, said the Chinese economy “has continued to recover steadily since the beginning of the year, with the trade in goods demonstrating strong resilience despite external pressures”.

China’s imports and exports maintained a steady growth momentum in May 2025, with trade accelerated following high-level economic and trade talks between China and the United States in Switzerland in mid-May, Lyu said.

According to the GAC, China’s total value of goods trade reached 3.81 trillion yuan last month, up 2.7% year-on-year.

Xiao Lu, deputy director of the department of foreign trade at the Ministry of Commerce, said that amid global supply chain restructuring and de-risking trends, Chinese manufacturers have ramped up high-tech innovation, fostering innovation chains alongside industrial clusters.

Wang Qian, a researcher specializing in international trade at Shanghai University of International Business and Economics, said that China’s export growth has been primarily driven by mechanical and electrical product exports in recent years.

“A growing range of products is fuelling export growth through increasingly innovative activities and integrated supply chain collaboration,” Wang said.

Latest data from the GAC shows that China’s mechanical and electrical product exports increased 9.3% year-on-year to 6.4 trillion yuan between January and May, accounting for 60% of the country’s total exports.

Tax changes boost tourist spending across China

China has experienced a surge in inbound consumption following the introduction of an updated tax-refund-upon-departure policy, with increases in both the number of tax refund stores and the total amount refunded.

Between April 27 and May 26, the number of departure tax refund transactions processed by the country’s tax authorities jumped 116% year-on-year, and sales at tax refund stores climbed 56%, according to the State Taxation Administration.

The country has expanded its refund-upon-purchase service model nationwide, with the number of related transactions increasing 32-fold and sales surging 50-fold year-on-year, according to data released by the administration.

Driven by the new policy measures, 1,303 new departure tax refund stores were established across the country during the period, raising the total to 5,196, which was a 40% increase from the end of 2024, the data shows.

This rise in inbound consumption is a result of China’s latest efforts to encourage foreign tourist spending. On April 27, the country introduced a package of measures to optimize its departure tax refund policy, including measures lowering the minimum purchase threshold for refunds, raising the cash refund ceiling, expanding the network of participating stores, and broadening the range of products covered.

China is also promoting a refund-upon-purchase service model, allowing eligible tourists to receive tax refunds instantly at retail outlets rather than waiting until they leave the country.

International tourists in China can now claim a tax refund if they spend at least 200 yuan (about $28) at a single store in a single day and meet other relevant requirements, with refunds payable in multiple forms, including mobile, bank and cash payments. The upper limit for cash refunds has been raised to 20,000 yuan.