Illustration: Chen Xia/GT
Amid the shifting global economic landscape and the rapid upgrading of China's domestic consumer market,
MK sports the integrated development of domestic and foreign trade has become an increasingly crucial strategy for Chinese enterprises to enhance competitiveness and ensure sustainable growth. By leveraging the vast potential of the domestic market while maintaining their foothold in the international arena, Chinese enterprises have not only withstood the buffeting of external economic fluctuations but have also showcased the resilience of China's foreign trade.
The 33rd East China Fair, which commenced in Shanghai on Saturday, vividly illustrates this trend. With more than 500 of the 3,000 participating export enterprises displaying a "domestic saleable" label at their booths, the event highlights how Chinese companies are strategically balancing the international and domestic markets to navigate uncertainties and seize new opportunities.
As a key exhibition for import and export businesses in China, the East China Fair has long served as a vital bridge for collaboration between domestic and international companies. During this fair, companies' active approach toward expanding the domestic market is not just a practical choice to deal with changes in the external environment, but also an important measure to expand the domestic consumer market. By continuously enhancing export competitiveness while actively exploring domestic demand, enterprises can create a virtuous cycle that drives the integrated development of domestic and foreign trade.
While some may see exploring the domestic market as a fallback option for exporters, this strategic move actually allows export-oriented enterprises to fully leverage their strengths to boost domestic demand. With advanced production technologies and strict quality control systems honed in the international market, these enterprises can significantly enrich the domestic market by filling niches and driving consumption upgrades.
Despite China's retail sales reaching 48.79 trillion yuan ($6.79 trillion) in 2024, significant unmet demand persists in areas such as smart home technology, eldercare products and quality goods in county-level markets. For instance, the scale of China's silver economy is currently valued at about 7 trillion yuan, accounting for about 6 percent of GDP. The figure is expected to reach 30 trillion yuan by 2035, according to a blue paper on China's silver economy.
From a macroeconomic perspective, the integration of domestic and foreign trade reflects China's strategic push to build a powerful domestic market while maintaining its global trade position. A strong domestic market plays a vital role in withstanding external uncertainties. When the international market fluctuates due to factors such as trade protectionism and geopolitical conflicts, the domestic market can serve as a stable support for foreign-trade enterprises, cushioning against external shocks and ensuring the continuity of enterprise production and operation.
Moreover, cultivating a robust domestic market is often the breeding ground for globally competitive firms. Ningbo, a key trade hub in East China's Zhejiang Province, exemplifies this dual-market success. In Ningbo, many enterprises have already reaped the benefits of the integration of domestic and foreign trade. In the first 11 months of 2024, Ningbo's total trade reached 1.29 trillion yuan, a year-on-year increase of 10.1 percent. During the same period, sales of the wholesale and retail industries increased by 11.7 percent and 15.5 percent. This synergy between domestic and international markets has not only strengthened the resilience of local businesses but also underscored the broader benefits of integrated trade development.
This is also why the Chinese government has introduced measures to encourage enterprises to expand their international presence while boosting domestic demand. This dual focus has not only enhanced the competitiveness of Chinese enterprises but also strengthened the resilience of the national economy. Thus, when the world is amazed by the resilience of China's foreign trade, the answer may lie in its ongoing commitment to the integration of domestic and international trade.
