Chinese exports to exceeded China’s imports from North America by $263.2 billion in 2014. Similarly, China achieved a $103.8 billion trading surplus with other Asian trade partners and a $103.7 billion positive balance from Europe. Excluding Mexico, China won a $102.8 billion surplus with Latin America and the Caribbean.
The fact that China earns these trade surpluses indicates Chinese competitive advantages for a diverse set of export products highlighted below.
These major product supply advantages form a root cause for China’s world-leading trade surplus of $384.3 billion during 2014, exceeding America’s $726.3 billion trade deficit by over a trillion dollars.
China’s trade surplus in 2014 has grown by 111.4% since 2010 when its positive balance stood at $181.8 billion.
China Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which China earned the highest trade surpluses in 2014.
- Machinery: US$221.4 billion (19.1% of all product surpluses)
- Electronic equipment: $146.6 billion (12.7%)
- Furniture, lighting , signs and prefabricated buildings: $90 billion (7.8%)
- Knit or crochet clothing and accessories: $89.9 billion (7.8%)
- Clothing (not knit or crochet): $77.9 billion (6.7%)
- Footwear: $54 billion (4.7%)
- Articles of iron or steel: $48.9 billion (4.2%)
- Toys, games: $36.5 billion (3.2%)
- Iron and steel: $34.3 billion (3%)
- Leather, animal gut articles: $28.4 billion (2.5%)
The above top 10 product categories represent 71.5% of China’s overall product-category surplus subtotal which amounted to $1.2 trillion. For that subtotal, 59 of China’s 97 general product categories delivered a surplus in 2014.
Growth
China enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Gems, precious metals: Up 1,156% since 2010 (US$21.3 billion)
- Iron and steel: Up 851.8% ($34.3 billion)
- Paper: Up 173% ($13.5 billion)
- Inorganic chemicals: Up 157% ($4.6 billion)
- Aluminum: Up 154.2% ($14.6 billion)
- Lead: Up 128.9% ($80.8 million)
- Clocks and watches including parts: Up 121.9% ($1.9 billion)
- Feathers, artificial flowers and hair: Up 121.5% ($6.3 billion)
- Live trees and plants: Up 117.2% ($102.1 million)
- Furskins and artificial fur: Up 112.1% ($2.9 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled China to achieve the highest surpluses in its international trade with other countries.
- Phone system devices: US$151.4 billion
- Computers, optical readers: $134.7 billion
- Jewelry: $47.7 billion
- Lamps, lighting, illuminated signs: $30.6 billion
- TV receivers/monitors/projectors: $29.8 billion
- Miscellaneous furniture: $27.5 billion
- Footwear (rubber or plastic): $26.2 billion
- Cases, handbags, wallets: $25.5 billion
- Women’s clothing (not knit or crochet): $24.7 billion
- Women’s clothing (knit or crochet): $23.1 billion
- Seats (excluding barber/dentist chairs): $22 billion
- Jerseys, pullovers (knit or crochet): $20.5 billion
- Electric water heaters, hair dryers: $18.6 billion
- Cruise/cargo ships, barges: $17.7 billion
- Insulated wire/cable: $16.3 billion
Among these, exported jewelry had the fastest-growing Chinese surplus with a 959.8% gain since 2010. In second place were lamps, lighting and illuminated signs up 242.3% while insulated wire or cable moved ahead in value by 98.1%. Phone system devices appreciated 81.4%, just slightly behind rubber or plastic footwear at 83%.
China Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners China earned the highest trade surpluses in 2014.
- Hong Kong: US$350.3 billion (31.9% of Chinese country-specific surpluses)
- United States: $237.3 billion (21.6%)
- Netherlands: $55.6 billion (5.1%)
- Vietnam: $43.8 billion (4%)
- India: $37.9 billion (3.4%)
- United Kingdom: $33.5 billion (3%)
- United Arab Emirates: $23.3 billion (2.1%)
- Mexico: $21.1 billion (1.9%)
- Singapore: $18.1 billion (1.6%)
- Turkey: $15.6 billion (1.4%)
The above 10 trade partners represent 76.1% of China’s subtotal surplus of $1.1 trillion from the 157 geographic entities with which China demonstrated competitive trade advantages. That subtotal excludes the 62 trade partners with which China incurred trade deficits.
Growth
China enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Cameroon: Up 1,388% since 2010 (US$1.2 billion)
- Indonesia: Up 1,157% ($14.6 billion)
- Bosnia/Herzegovina: Up 1,138% ($247.5 million)
- Vanuatu: Up 689.8% ($173.3 million)
- Tanzania: Up 302.7% ($3.4 billion)
- Georgia: Up 266.9% ($855.5 million)
- Albania: Up 264.6% ($188.5 million)
- Senegal: Up 258.5% ($1.6 billion)
- Russia: Up 226% ($12.1 billion)
- Nepal: Up 210.7% ($2.2 billion)
From the above list, China showed major product supply advantages over several trade partners with comparatively small populations and for generally small surplus amounts. However, China did generate billion-dollar positive trade balances with large trading partners like Indonesia and Russia as well as some African and Asian nations.
Hong Kong
Below are the products that gave China the highest surpluses in its international trade with Hong Kong.
- Phone system devices: US$57.2 billion (16.3% of China’s surplus versus Hong Kong)
- Jewelry: $44.2 billion (12.6%)
- Integrated circuits/microassemblies: $30.6 billion (8.7%)
- Computers, optical readers: $30 billion (8.6%)
- Liquid crystal/laser/optical tools: $13 billion (3.7%)
- Computer parts, accessories: $12.1 billion (3.5%)
- Solar power diodes/semi-conductors: $9.5 billion (2.7%)
- Printed circuits: $8.3 billion (2.4%)
- Electrical converters/power units: $8.1 billion (2.3%)
- Cruise/cargo ships, barges: $6.4 billion (1.8%)
Among these, jewelry had the fastest-growing Chinese surplus with Hong Kong posting a 117.4% gain. In second place were phone system devices up 26.6% and solar power diodes and semi-conductors ahead by 21.6% from 2010 to 2014.
America
Below are the products that gave China the highest surpluses in its international trade with the United States.
- Computers, optical readers: US$48.6 billion (20.5% of China’s surplus versus US)
- Phone system devices: $34.3 billion (14.5%)
- TV receivers/monitors/projectors: $10.1 billion (4.3%)
- Automobile parts/accessories: $7.9 billion (3.3%)
- Miscellaneous furniture: $7.7 billion (3.3%)
- Seats (excluding barber/dentist chairs): $7 billion (3%)
- Lamps, lighting, illuminated signs: $6.4 billion (2.7%)
- Computer parts, accessories: $5.9 billion (2.5%)
- Cases, handbags, wallets: $5.9 billion (2.5%)
- Footwear (leather): $5.4 billion (2.3%)
Among these, phone system devices had the fastest-growing Chinese surplus with the US posting a 34.2% gain. In second place were computer parts and accessories up 32.8% and lamps, lighting and illuminated signs ahead by 32.5% from 2010 to 2014.
Netherlands
Below are the products that gave China the highest surpluses in its international trade with Netherlands.
- Computers, optical readers: US$15.6 billion (28% of China’s surplus versus Netherlands)
- Phone system devices: $7.5 billion (13.6%)
- Printing machinery: $3.2 billion (5.8%)
- TV receivers/monitors/projectors: $2.7 billion (4.8%)
- Solar power diodes/semi-conductors: $1.1 billion (2%)
- Lamps, lighting, illuminated signs: US$1.1 billion (2% of [COUNTRY ADJECTIVE] surplus versus Netherlands)
- Table games, bowling equipment: $770.2 million (1.4%)
- Computer parts, accessories: $709.5 million (1.3%)
- Women’s clothing (not knit or crochet): $708.7 million (1.3%)
- TV receiver/transmit/digital cameras: $697 million (1.3%)
Among these, women’s clothing (not knit or crochet) had the fastest-growing Chinese surplus with Netherlands posting a 162.4% gain. In second place were phone system devices up 43.1% and lamps, lighting and illuminated signs ahead by 32.1% from 2010 to 2014.
See also China’s Top 10 Exports, Highest Value Chinese Export Products,China’s Top 10 Imports and China’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on November 26, 2015
Trade Map, International Trade Centre. Accessed on November 26, 2015
Investopedia, Net Exports Definition. Accessed on November 26, 2015