From a geographic perspective, the United States of America and Hong Kong placed first and second respectively among trade partners at the expense of which the People’s Republic posted its highest positive trade balances.
China’s total trade balance for all products equaled a positive US$587.5 billion in 2021, far exceeding the $383.1 billion surplus during 2014. Year over year, China’s recent $587.5 billion trade surplus reflects a 9.8% increase from the nation’s $535 billion surplus for 2020.
To put China’s trade surplus metric into perspective, the country’s total external debt (encompasses both public and private red ink) equaled -$2.747 trillion at December 2021. China’s external debt is the equivalent of about 4.7 times the magnitude of its positive international trade balance for commodities for 2021.
China’s Top Trade Surpluses by Product
The following 10 leading products generated a surplus subtotal of $590.2 billion for China in its global trade during 2021. Metrics listed below highlight China’s strongest competitive advantages over worldwide trading partners for these specific goods.
- Phone devices including smartphones: US$176.8 billion (Up 16.7% since 2014)
- Computers, optical readers: $145.2 billion (Up 7.8%)
- Lamps, lighting, illuminated signs: $44.2 billion (Up 44.5%)
- Models, puzzles, miscellaneous toys: $41.1 billion (Up 198.3%)
- TV receivers/monitors/projectors: $35.4 billion (Up 19%)
- Miscellaneous furniture: $33.6 billion (Up 22.5%)
- Seats (excluding barber/dentist chairs): $32.8 billion (Up 49.2%)
- Miscellaneous plastic items: $28.2 billion (Up 78.7%)
- Electric water heaters, hair dryers: $27.6 billion (Up 48.9%)
- Electric storage batteries: $25.2 billion (Up 442.5%)
The top product delivering the greatest surplus growth from 2014 to 2021 were electric storage batteries (up 442.5%). In second place were models, puzzles and miscellaneous toys (up 195.3%) trailed by miscellaneous plastic items (up 78.7%) then seats other than barber and dentist chairs (up 49.2%).
China’s Top Trade Deficits by Product
The 10 major products below accumulated a deficit subtotal of -$938.3 billion for China in international trade during 2021. China has demonstrated the severest competitive disadvantages in the exports and imports of the following commodities.
- Integrated circuits/microassemblies: -US$250.5 billion (Up 59.3% since 2014)
- Crude oil: -$228.5 billion (Up 0.3%)
- Iron ores, concentrates: -$169.9 billion (Up 81.9%)
- Petroleum gases: -$59.7 billion (Up 114.9%)
- Copper ores, concentrates: -$50.6 billion (Up 135.6%)
- Soya beans: -$48.2 billion (Up 20.4%)
- Gold (unwrought): -$40.8 billion (2014 data unavailable)
- Machinery for making semi-conductors: -$34.1 billion (Up 253.5%)
- Refined copper, unwrought alloys: -$29.5 billion (Up 24.9%)
- Cars: -$26.4 billion (Down -52.2%)
China’s red ink in global trade expanded at the fastest rate since 2014 for the following products: machinery for making semi-conductors (up 253.5%), copper ores and concentrates (up 135.6%), petroleum gases (up 114.9%) then iron ores and concentrates (up 81.9%).
Countries Generating China’s Biggest Trade Surpluses
In 2021, China generated a surplus subtotal worth $1.023 trillion with the following 10 trading partners.
- United States: US$357.4 billion (Up 50.8% since 2014)
- Hong Kong: $304.1 billion (Down -13.2%)
- Netherlands: $79.2 billion (Up 42.4%)
- India: $61.6 billion (Up 62.8%)
- United Kingdom: $55.4 billion (Up 65.9%)
- Mexico: $43.7 billion (Up 107.1%)
- Vietnam: $42.8 billion (Down -2.3%)
- Philippines: $29.3 billion (Up 1076.8%)
- Poland: $28.1 billion (Up 147.8%)
- Spain: $21.4 billion (Up 39.8%)
China’s surpluses expanded at the fastest pace from 2014 to 2021 at the expense of the following trade partners: Philippines (up 1,077%), Poland (up 147.8%), Mexico (up 107.1%) then the United Kingdom (up 65.9%).
Countries Causing China’s Worst Trade Deficits
China experienced a losing international trade relationship with some countries. The following 10 trade partners created a -$510.5 billion deficit subtotal in 2021 from exchanging exports and imports.
- Taiwan: -US$156.4 billion (Up 47.9% since 2014)
- Australia: -$92.6 billion (Up 58.3%)
- South Korea: -$58.7 billion (Down -34.6%)
- Brazil: -$55.2 billion (Up 229.2%)
- Japan: -$37.1 billion (Up 174.4%)
- Switzerland: -$29.6 billion (Down -20.9%)
- Saudi Arabia: -$24.2 billion (Down -13.5%)
- Oman: -$22.4 billion (Up 3.2%)
- Malaysia: -$18.4 billion (Up 97.9%)
- Angola: -$16 billion (Down -36.5%)
Accelerating 229.2% from 2014 to 2021, China’s deficit with Brazil grew at the fastest pace. China’s negative net exports with Japan rose 174.4% over the 7-year period trailed by a 97.9% expansion in red ink trading with Malaysia and a 58.3% increase for trade with Australia.
China saw its country-specific deficits shrink with 4 top trade partners: Angola (down -36.5%), South Korea (down -34.6%), Switzerland (down -20.9%) and Saudi Arabia (down -13.5%).
See also China’s Top 10 Imports, China’s Top Trading Partners, China’s Top 10 Exports and China’s Top 10 Major Export Companies
Research Sources:
CEIC Data, External Debt (for specified countries). Accessed on May 13, 2022
Central Intelligence Agency, The World Factbook Country Profiles, Central Intelligence Agency. Accessed on May 13, 2022
Investopedia, Net Exports Definition. Accessed on May 13, 2022
International Trade Centre, Trade Map. Accessed on May 13, 2022
Wikipedia, Economy of China. Accessed on May 13, 2022