Overall Analysis and Evaluation of Chinese Enterprises' Foreign Trade in 2022

In 2022, the global economic growth rate significantly slowed down, inflation remained high, financial market risks increased, and geopolitical conflicts continued, bringing multiple pressures to Chinese enterprises' foreign trade. However, in the face of an uncertain environment and many unpredictable difficulties, China's foreign trade has shown strong resilience. The scale of goods import and export has reached a new historical high, trading partners have become more diversified, international market layout and domestic regional structure have become more balanced, private enterprises have made outstanding contributions, trade methods and commodity structure have continued to optimize, and the goal of maintaining stability and improving quality has been achieved.

In 2022, China's trade volume of goods reached a new high, with a total import and export volume of 6309.6 billion US dollars, an increase of 4.4% compared to 2021. Both the export and import volumes of goods have achieved new breakthroughs, with a year-on-year increase of 7.0% to 3593.6 billion US dollars, accounting for 14.2% of the world's total goods exports, a decrease of 0.7 percentage points from 2021; The import volume increased by 1.1% year-on-year, reaching $2716 billion, accounting for 10.5% of the world's total goods imports, a decrease of 1.3 percentage points from 2021. In 2022, China's trade surplus was 877.6 billion US dollars, an increase compared to 2021 (see Figure 1).

Figure 1 Overall situation of China's foreign trade from 2015 to 2022

（1） The Trade Modes of Chinese Foreign Trade Enterprises in 2022

In 2022, the total import and export volume of general trade accounted for 63.8% of China's total foreign trade import and export volume, with a trade volume of 4022.96 billion US dollars, an increase of 7.9% compared to 2021. Among them, the export volume increased by 11.9% compared to 2021, with a trade volume of 2.287 trillion US dollars; The import volume increased by 3.6% compared to 2021, with a trade volume of 1.73596 trillion US dollars. The trade surplus under the general trade mode was 5510.3 billion US dollars, a year-on-year increase of 47.8%.

In 2022, the total import and export volume of processing trade accounted for 20.1% of China's total foreign trade import and export volume, with a trade volume of 1.26854 trillion US dollars, a decrease of 3.6% compared to 2021. The export and import volumes of processing trade have both slightly decreased, with the export volume decreasing by 2.0% compared to 2021, and the trade volume reaching 809.54 billion US dollars; The import volume decreased by 6.2% compared to 2021, with a trade volume of 459.0 billion US dollars. However, the trade surplus under China's processing trade model has achieved positive growth, with a specific amount of 350.54 billion US dollars, an increase of 4.0% compared to 2021.

In 2022, the total import and export volume of other trade modes accounted for 16.1% of China's total foreign trade import and export volume, with a trade volume of 1018.1 billion US dollars. Among them, the export value increased by 1.9% compared to 2021, reaching 4970.6 billion US dollars; The import volume remained basically unchanged from the previous year, with a specific amount of 521.04 billion US dollars (see Figures 2 to 5).

Figure 2 Trade Mode of Export Volume in 2022

Figure 3 Export Situation of China's Foreign Trade Modes from 2015 to 2022

Figure 4 Trade Mode of Import Volume in 2022

Figure 5 Import situation of China's foreign trade modes from 2015 to 2022

（2） Nature of Chinese Foreign Trade Enterprises in 2022

From the perspective of the main body of China's foreign trade enterprises, private enterprises in China will continue to maintain their position as the main force of foreign trade in 2022, playing a significant role as a stabilizer in foreign trade and contributing 80.8% to the growth of national import and export trade. Specifically, there are 510000 private enterprises with import and export trade achievements, and the total import and export volume of private enterprises has reached 21.4 trillion yuan, accounting for 50.9% of China's total foreign trade import and export volume, exceeding half for the first time.

In 2022, the total import and export volume of state-owned enterprises was 1015.8 billion US dollars, accounting for 16.1% of China's total foreign trade import and export volume. Among them, the export value was 284.08 billion US dollars, an increase of 5.6% compared to 2021; The import value was 731.72 billion US dollars, a year-on-year increase of 12.5%. The total import and export volume of foreign-funded enterprises was 2076.37 billion US dollars, accounting for 32.9% of China's total foreign trade import and export volume, slightly decreasing compared to 2021. Among them, the export value was 1123.33 billion US dollars, a decrease of 2.5% compared to 2021; The import value was 953.04 billion US dollars, a decrease of 6.3% compared to 2021 (see Figures 6 to 9).

Figure 6 Export situation of different types of enterprises in 2022

Figure 7 Export situation of different types of enterprises in China from 2015 to 2022

Figure 8 Import situation of different types of enterprises in 2022

Figure 9 Import situation of different types of enterprises in China from 2015 to 2022

（3） Distribution of Chinese Foreign Trade Enterprises by Country (Region) in 2022

In 2022, the regional markets for Chinese enterprises' foreign trade will still mainly be the three major regional markets of Asia, Europe, and North America. The top five trading partners are ASEAN, the European Union, the United States, South Korea, and Japan. China's imports from the European Union, the United States, South Korea, and Japan have slightly decreased in 2022, and its trading partners are showing a more diversified distribution trend.

From the regional market distribution of foreign trade, the total import and export volume of China in the Asian market in 2022 was 319.192 billion US dollars, an increase of 4.4% compared to 2021, accounting for 50.6% of the total foreign trade value, which is basically the same as the previous year. Among them, the export value to the Asian market was 1701.16 billion US dollars, an increase of 8.1% compared to 2021, accounting for 47.3% of the total export value; The import value to the Asian market was $1490.76 billion, an increase of 0.5% from 2021, accounting for 54.9% of the total import value. The total import and export volume of China in the European market was 1.2339 trillion US dollars, an increase of 4.7% compared to 2021, accounting for 19.6% of the total value of foreign trade. Among them, the export value to the European market was 744.9 billion US dollars, a year-on-year increase of 6.4%, accounting for 20.7% of the total export value; The import value to the European market was 489 billion US dollars, an increase of 2.3% from 2021 and accounting for 18.0% of the total import value. The total import and export volume of China in the North American market was 855.97 billion US dollars, an increase of 2.3% compared to 2021, accounting for 13.6% of the total value of foreign trade. Among them, the export value to the North American market was 635.58 billion US dollars, a year-on-year increase of 1.5%, accounting for 17.7% of the total export value; The import value to the North American market was 220.39 billion US dollars, an increase of 4.7% compared to 2021, accounting for 8.1% of the total import value (see Figures 10 and 11).

Figure 10 Regional Market Distribution of Chinese Enterprise Exports in 2022

Figure 11 Regional Market Distribution of Chinese Enterprise Imports in 2022

From the distribution of foreign trade partners, ASEAN maintains its position as the largest trading partner, with a total import and export volume of 975.34 billion US dollars to ASEAN, an increase of 11.2% from 2021. Among them, the export value to ASEAN was 567.29 billion US dollars, a year-on-year increase of 17.7%; The import value to ASEAN was 408.05 billion US dollars, an increase of 3.3% compared to 2021. The EU remains China's second largest trading partner, with a total import and export value of 847.32 billion US dollars, an increase of 2.4% from 2021. Among them, the export value to the European Union was 561.97 billion US dollars, an increase of 0.6% compared to 2021; The import value to the European Union was 285.35 billion US dollars, a decrease of 7.9% compared to 2021. The United States is China's third largest trading partner, with a total import and export volume of 759.43 billion US dollars, an increase of 0.6% from 2021. Among them, the export value to the United States was 581.78 billion US dollars, a year-on-year increase of 1.2%; The import value to the United States was $177.64 billion, a decrease of 1.1% from 2021. China's fourth largest trading partner is South Korea, with a total import and export volume of 362.29 billion US dollars, an increase of 0.1% from 2021. Among them, the export value to South Korea was 162.62 billion US dollars, an increase of 9.5% year-on-year; The import value to South Korea was $199.67 billion, a decrease of 6.5% compared to 2021. China's fifth largest trading partner is Japan, with a total import and export volume of 357.42 billion US dollars, a decrease of 3.7% from 2021. Among them, the export value to Japan was 172.93 billion US dollars, an increase of 4.4% year-on-year; The import value to Japan was 184.49 billion US dollars, a decrease of 10.2% compared to 2021 (see Table 1).

表1 2022年中国对外贸易的国别（地区）分布情况

|Excel下载

Table 1 Distribution of Countries (Regions) in China's Foreign Trade in 2022

In 2022, China's total import and export to the "the Belt and Road" countries will be 13833.8 billion yuan, an increase of 19.4% year on year, accounting for 32.9%, an increase of 3.2 percentage points over 2021. Among them, the export value was 7887.7 billion yuan, an increase of 20.0% over the previous year; The import value was 594.61 billion yuan, an increase of 18.7% compared to 2021. In addition, China's total import and export volume to the other 14 member countries of the Regional Comprehensive Economic Partnership (RCEP) in 2022 was 1.29499 trillion yuan, a year-on-year increase of 7.5%.

（4） The commodity structure of Chinese foreign trade enterprises in 2022

From the perspective of export commodity structure, the export value of mechanical and electrical products in 2022 was 2052.77 billion US dollars, a year-on-year increase of 3.4%, accounting for 57.1% of China's export value. Among them, the export value of automatic data processing equipment and its components was 236 billion US dollars, a decrease of 7.6% compared to 2021; The export value of mobile phones was 142.67 billion US dollars, a decrease of 2.5% compared to 2021; The export value of household appliances was 85.5 billion US dollars, a year-on-year decrease of 13.3%; The export value of automobiles and automobile chassis was 60.16 billion US dollars, a year-on-year increase of 4.5%. The export value of high-tech products was 951.33 billion US dollars, a decrease of 2.9% compared to 2021. The export value of textile yarns, fabrics and products was 147.95 billion US dollars, an increase of 1.9% over the previous year; The export value of furniture and its parts was 69.68 billion US dollars, a year-on-year decrease of 5.6%; The export value of clothing and clothing accessories was 175.4 billion US dollars, and the export value of shoes was 57.58 billion US dollars, an increase of 3.0% and 20.1% respectively compared to 2021. Overall, the export value of labor-intensive goods has increased significantly (see Table 2).

表2 2018～2022年中国主要商品出口情况

|Excel下载

Table 2: China's Major Commodity Exports from 2018 to 2022

From the perspective of imported commodity structure, in 2022, China's energy and resource commodity imports continued to increase due to the sustained impact of price driven factors. Among them, imported crude oil was 365.51 billion US dollars, a year-on-year increase of 42.0%; The import of natural gas was 76.14641 billion tons, a decrease of 12.7% compared to 2021, but the import value was 20.02 billion US dollars, an increase of 25.7% compared to the previous year. The import quantity and amount of soybeans in China have both increased significantly, with 69693.45 million tons of soybeans imported, an increase of 30.4% compared to 2021, and an import value of 61.24 billion US dollars, an increase of 14.4% compared to the previous year. In addition, there are also some goods whose import value is showing a downward trend. Among them, the import value of iron ore and its concentrates was 128.1 billion US dollars, a year-on-year decrease of 30.6%; The import value of electromechanical products and high-tech products has slightly decreased, reaching 1045.85 billion US dollars and 763.47 billion US dollars respectively, a decrease of 8.3% and 8.8% compared to 2021 (see Table 3).

表3 2018～2022年中国主要商品进口情况

|Excel下载

Table 3: Import of Major Commodities in China from 2018 to 2022

（5） Regional distribution of Chinese foreign trade enterprises in 2022

From the perspective of China's eastern, central, and western regions, the proportion of foreign trade in the eastern region will still be the largest in 2022, while the export volume of the central and western regions will grow rapidly. The export volume of the central region in 2022 increased by 9.6% year-on-year, while that of the western region increased by 9.4% year-on-year, both higher than the national export growth rate of 6.8%.

In 2022, the total import and export volume of foreign trade in the eastern region was 5161.88 billion US dollars, a year-on-year increase of 4.8%, accounting for 81.8% of the total import and export volume of foreign trade in the country. Among them, the export and import volumes were 2858.14 billion US dollars and 2303.74 billion US dollars respectively, accounting for 79.5% and 84.8% of the national total, respectively. Compared with the previous year, the proportion of export volume has decreased, while the proportion of import volume has increased.

From the situation in the central region, the total import and export volume of foreign trade in the central region was 567.59 billion US dollars, slightly lower than the previous year, accounting for 9.0% of the total import and export volume of foreign trade in the country. Among them, the export and import values of the central region were 384.95 billion US dollars and 182.64 billion US dollars respectively, with an increase of 9.6% in export value compared to 2021, accounting for 10.7% of the national total, and a decrease of 18.7% in import value compared to 2021, accounting for 6.7% of the national total.

From the perspective of the western region, the total import and export volume of foreign trade in 2022 was 580.11 billion US dollars, a year-on-year increase of 5.3%, accounting for 9.1% of the total import and export volume of foreign trade in the country. Among them, the export and import volumes accounted for 9.8% and 8.5% of the national total, with a scale of 350.52 billion US dollars and 229.59 billion US dollars respectively. The export volume increased by 9.4% compared to 2021, while the import volume decreased by 0.3% year-on-year (see Table 4).

表4 2015～2022年中国对外贸易区域分布的总体情况

|Excel下载

Table 4 Overall Distribution of China's Foreign Trade Regions from 2015 to 2022

From the perspective of each province (region, city), Guangdong Province still maintained its leading position in export volume in 2022, with an export value of 799.96 billion US dollars, an increase of 2.3% compared to 2021; The second largest export value is Jiangsu Province, with an export value of 522.59 billion US dollars, an increase of 3.8% compared to 2021; Zhejiang Province, Shandong Province, and Shanghai City ranked third, fourth, and fifth in terms of export value, with annual growth rates of 10.7%, 12.0%, and 5.4%, respectively. The export value was 515.80 billion US dollars, 304.77 billion US dollars, and 256.37 billion US dollars, respectively; In addition, the export volumes of Fujian, Sichuan, Beijing, Chongqing, and Henan were $182.04 billion, $93.15 billion, $88.17 billion, $79.09 billion, and $78.76 billion, respectively, with year-on-year growth rates of 8.7%, 5.4%, -6.8%, -1.1%, and 1.2% (see Figure 12 and Table 5).

Figure 12 Export situation of various provinces (regions, cities) in China in 2022

表5 2015～2022年中国各省（区、市）的出口情况

|Excel下载

Table 5 Export Situation of Various Provinces (Regions, Cities) in China from 2015 to 2022

From the import situation of various provinces (regions, municipalities), in 2022, Beijing's import volume exceeded Guangdong Province and ranked first among all provinces (regions, municipalities) in China. Beijing's import volume was 458.33 billion US dollars, an increase of 21.8% compared to 2021, with a significant growth rate; The import volume of Guangdong Province ranks second in the country, at 447.08 billion US dollars, a year-on-year decrease of 10.2%; The third, fourth, and fifth largest import volumes are Shanghai, Jiangsu, and Shandong provinces, with import volumes of 370.87 billion US dollars, 295.16 billion US dollars, and 194.66 billion US dollars, respectively, with year-on-year growth rates of -3.7%, -2.7%, and 7.3%, respectively; In addition, the import volumes of Zhejiang Province, Fujian Province, Tianjin City, Liaoning Province, and Sichuan Province were 187.65 billion US dollars, 115.46 billion US dollars, 69.57 billion US dollars, 64.94 billion US dollars, and 58.02 billion US dollars, respectively, which increased by 7.2%, -2.2%, -4.2%, -4.8%, and -1.5% compared to 2021 (see Figure 13 and Table 6).

Figure 13 Import situation of various provinces (regions, cities) in China in 2022

表6 2015～2022年中国各省（区、市）的进口情况

|Excel下载

Table 6 Import Situation of Various Provinces (Regions, Cities) in China from 2015 to 2022

（6） Development of Cross border E-commerce in China in 2022

In 2022, the total import and export volume of cross-border e-commerce in China was 2.1 trillion yuan, a year-on-year increase of 7.0% (see Figure 14), accounting for 4.9% of China's total foreign trade import and export volume. Among them, China's cross-border e-commerce exports amounted to 1.5 trillion yuan, an increase of 9.9% compared to 2021, accounting for 6.4% of China's foreign trade exports; China's cross-border e-commerce imports amounted to 0.5 trillion yuan, a decrease of 0.8% compared to 2021, accounting for 2.9% of China's foreign trade imports.

Figure 14: The total import and export volume of cross-border e-commerce in China from 2019 to 2022 and its year-on-year growth rate

From the perspective of transaction mode, in 2022, the total import and export volume of B2B cross-border e-commerce in China accounted for 75.6% of the total import and export volume of cross-border e-commerce in China, which has decreased slightly; The total import and export volume of B2C cross-border e-commerce in China accounts for 24.4% of the total import and export volume of cross-border e-commerce in China, and the proportion has increased.

In terms of user scale, the number of new cross-border e-commerce users in China in 2022 was 170 million, an increase of 8.4% year-on-year, with a slowdown in growth rate (see Figure 15).

Figure 15: Scale and year-on-year growth rate of new cross-border e-commerce users in China from 2019 to 2022

Analysis and Evaluation of Chinese Service Trade Enterprises in 2022

In 2022, China's service trade maintained the growth trend of the previous year, with a significant increase in the total import and export volume of transportation services, and a clear recovery trend in travel services, further optimizing the structure of service trade.

（1） Overall situation of China's service trade in 2022

In 2022, the total import and export volume of China's service trade was 5980.2 billion yuan, an increase of 12.9% compared to 2021, surpassing the 5415.3 billion yuan in 2019 and reaching a historical high. Among them, the export value of service trade was 2852.2 billion yuan, an increase of 12.1% over the previous year; The import volume of service trade was 3128 billion yuan, an increase of 13.5% compared to 2021; The reverse balance of trade in services is 275.8 billion yuan, an increase from 2021. In 2022, the total import and export volume of service trade accounted for 12.4% of the total import and export volume of foreign trade, an increase compared to the previous year (see Table 7).

表7 2015～2022年中国服务贸易情况

|Excel下载

Table 7: China's Service Trade Situation from 2015 to 2022

（2） Continuous optimization of China's service trade structure in 2022

From the perspective of the industry structure of China's service trade, in 2022, travel service trade reversed the downward trend since the impact of the epidemic, increasing by 8.5%, and the total import and export volume of travel services was 855.98 billion yuan; The total import and export volume of transportation services was 2110.1 billion yuan, accounting for 35.3% of the total import and export volume of service trade, maintaining a leading position and being the fastest-growing industry in service trade, with a growth rate of 25.4%; The total import and export volume of insurance services also showed a high growth rate in 2022, with a year-on-year increase of 24.4% and a total amount of 170.48 billion yuan; Due to the development of digital trade, telecommunications, computer and information services, as well as intellectual property usage fee services, have maintained a good growth trend. The total import and export volume increased by 8.3% and 2.5% respectively compared to 2021, with amounts of 835.27 billion yuan and 388.12 billion yuan, respectively; In addition, the total import and export volume of maintenance and repair services, processing services, other commercial services, and government services all achieved positive growth in 2022, with growth rates of 12.4%, 8.6%, 9.1%, and 15.2%, respectively, with amounts of 84.71 billion yuan, 145.99 billion yuan, 1024.03 billion yuan, and 35.56 billion yuan.

However, the total import and export volume of construction services, financial services, and personal, cultural, and entertainment services declined in 2022, with amounts of 241 billion yuan, 59.4 billion yuan, and 29.55 billion yuan, respectively, a decrease of 7.2%, 10.8%, and 11.4% from 2021 (see Figure 16).

Figure 16 Distribution of China's service trade in different industries in 2022

（3） Optimization of China's Service Outsourcing Industry Structure in 2022

In 2022, the scale of China's service outsourcing industry has achieved steady growth. Specifically, China has undertaken service outsourcing contracts worth 1317.7 billion yuan, a year-on-year increase of 16.7%, maintaining a high growth rate. The execution amount of the contract was 895.3 billion yuan, a year-on-year increase of 4.1%. Among them, the execution amount of offshore business process outsourcing (BPO) undertaken by China was 146.2 billion yuan, and the execution amount of offshore knowledge process outsourcing (KPO) was 381.9 billion yuan, an increase of 11.8% and 6.2% respectively compared to 2021. However, in 2022, the implementation amount of offshore information technology outsourcing (ITO) undertaken by China was 367.2 billion yuan, slightly down from 2021, but the information technology solution services, new energy technology R&D services and Internet marketing promotion services grew rapidly, with growth rates of 129.1%, 61.3% and 49.2% respectively. In addition, in 2022, the execution amount of service outsourcing contracts undertaken by China from the "the Belt and Road" co construction countries and other 14 RCEP member countries has increased significantly, with the execution amount of 182.1 billion yuan and 208.9 billion yuan, respectively, growing by 12.7% and 23.3%, respectively, accounting for 20.3% and 23.3% of the execution amount of service outsourcing contracts in 2022.

（4） Outlook and Suggestions for Service Trade

With the recovery growth of global service trade, digital trade has maintained a vigorous development trend, and the scale of digital trade continues to expand. Digital technology, digital industries, and digital services are all showing a good development trend, especially the launch of ChatGPT, which has given birth to new driving forces for global economic development. At the same time, differences in digital resource endowments may also lead to a more differentiated global economic growth trend and intensified competition in the digital economy field. China should seize the opportunity to accelerate the establishment and improvement of a digital trade governance system, accelerate the formulation of relevant basic systems and standards, make good use of the free trade pilot zone and Hainan Free Trade Port, cultivate digital trade enterprises with international competitiveness, promote the innovative development of service trade, and create a "new engine" for building a strong trading country.

Analysis and Evaluation of Chinese Outward Investment Enterprises in 2022

（1） Overview of World Outward Foreign Direct Investment in 2022

According to the World Investment Report 2023 released by the United Nations Conference on Trade and Development (UNCTAD), global outward foreign direct investment has declined in 2022 due to a decrease in financing and M&A transactions in developed countries.

From the perspective of FDI inflow, the FDI inflow in 2022 was 1.295 trillion US dollars, a decrease of 12% compared to 2021. Among them, FDI inflows to developed economies decreased by 37% year-on-year, with an inflow of 0.378 trillion US dollars, and FDI inflows to Europe decreased to -0.107 trillion US dollars. In 2022, the inflow of FDI into North America decreased by 25% year-on-year to $0.338 trillion, but the United States still maintained its position as the largest destination country for FDI, with a decrease of 26% and an inflow of $0.285 trillion in 2022.

In 2022, FDI inflows into developing economies showed an upward trend, increasing by 4% compared to 2021, with an inflow of 0.916 trillion US dollars, accounting for 71% of the world's FDI inflows and more than 2/3. Developing Asia is the world's largest recipient of FDI, with FDI inflows of $0.662 trillion, unchanged from the previous year, contributing more than half of the world's FDI inflows. Among them, FDI inflows into mainland China increased by 4%, reaching a total of 0.189 trillion US dollars. In addition, Singapore ranks third in the world with FDI inflows of $0.141 trillion; The inflow of FDI into Hong Kong, China is 0.118 trillion US dollars. In 2022, FDI flows to Africa decreased by 44%, with an inflow of $0.045 trillion. In 2022, FDI inflows into Latin America and the Caribbean increased by 51%, with an inflow of $0.208 trillion (see Tables 8 and 9).

表8 2020～2022年世界各地区及主要经济体的FDI流入情况

|Excel下载

Table 8 FDI inflows in various regions and major economies of the world from 2020 to 2022

表9 2022年FDI流入量排名前十的国家（地区）

|Excel下载

Table 9 Top Ten Countries/Regions with FDI Inflows in 2022

From the perspective of FDI outflows, the FDI outflows from developed economies in 2022 were $1.031 trillion, a decrease of 17% compared to 2021. The outflow of FDI from Europe has experienced a significant decline, with an outflow of 0.224 trillion US dollars, a decrease of 61%. Among them, Germany's FDI outflow decreased by 13% to 0.143 trillion US dollars, and Germany remains the largest FDI outflow country in Europe, ranking fourth globally. However, FDI outflows from the UK and Sweden increased by 53% and 130% respectively, with outflows of $0.13 trillion and $0.066 trillion, ranking fifth and tenth globally, respectively. France and Spain have also achieved positive growth in FDI outflows, reaching $0.480 trillion and $0.390 trillion respectively, ranking 12th and 13th in the world. In 2022, the outflow of FDI from North America was $0.452 trillion, a decrease of 5% compared to 2021. The outflow of FDI from the United States increased by 7%, reaching 0.373 trillion US dollars. Among them, the cross-border M&A volume from the United States increased by 21%, reaching 0.273 trillion US dollars, with 15 cross-border M&A transactions worth over 5 billion US dollars. In 2022, among the FDI outflows from other developed countries, Japan and Australia showed significant growth. The outflow of FDI from Japan was $0.161 trillion, a year-on-year increase of 10%. Among them, Greenland Investment increased by 47% to $0.044 trillion, but the amount of cross-border M&A transactions was only $0.006 trillion, a decrease of 90%. The outflow of FDI from Australia increased from 0.003 trillion US dollars in 2021 to 0.117 trillion US dollars in 2022, ranking Australia sixth in the world. South Korea's FDI outflow was 0.066 trillion US dollars, unchanged from the previous year, making it the ninth largest FDI outflow country in the world.

In 2022, the outflow of FDI from developing economies was $0.459 trillion, a decrease of 5% compared to 2021. Among them, FDI outflows from developing Asia decreased by 11%, but the region still accounts for over a quarter of global FDI outflows. The outflow of FDI from mainland China was 0.147 trillion US dollars, a decrease of 18%. In 2022, the outflow of FDI from Latin America and the Caribbean maintained a growing trend, with an outflow of 0.059 trillion US dollars, an increase of 55%. Among them, Mexico's FDI outflow increased from -0.002 trillion US dollars in 2021 to 0.013 trillion US dollars in 2022. The FDI outflows from Brazil and Chile were 0.025 trillion US dollars and 0.012 trillion US dollars, respectively, increasing by 23% and 4%. In 2022, FDI outflows from Africa have increased (see Tables 10 and 11).

表10 2020～2022年世界各地区及主要经济体的FDI流出情况

|Excel下载

Table 10 FDI outflows from various regions and major economies around the world from 2020 to 2022

表11 2022年FDI流出量排名前十的国家（地区）

|Excel下载

Table 11 Top 10 countries/regions with FDI outflows in 2022

（2） Overall Analysis of Chinese Enterprises' Outward Direct Investment in 2022

Stable development of Chinese enterprises' outward direct investment in 2022

According to statistics from the Ministry of Commerce, China's total outward direct investment in 2022 was $146.5 billion, an increase of 0.9% compared to 2021. Among them, the total amount of non-financial outward direct investment was 116.85 billion US dollars, an increase of 2.8% compared to 2021, accounting for 79.8% of the total outward direct investment; The total amount of outward direct investment in the financial sector was 29.65 billion US dollars, a year-on-year increase of 6.0%, accounting for 20.2% (see Table 12).

表12 2022年中国对外直接投资情况

|Excel下载

Table 12: China's Outward Direct Investment in 2022

From the perspective of investment in the "the Belt and Road" co construction countries, non-financial outward direct investment of Chinese enterprises in the "the Belt and Road" co construction countries will reach 20.97 billion US dollars in 2022, an increase of 3.3% over 2021, accounting for 17.9% of the total non-financial outward direct investment, which is basically the same as last year (see Figure 17).

Figure 17 Non financial outward direct investment of Chinese enterprises in the "the Belt and Road" countries from 2018 to 2022

Analysis of Cross border Mergers and Acquisitions by Chinese Enterprises in 2022

In 2022, the amount of cross-border M&A transactions by Chinese enterprises was 28.74 billion US dollars, a decrease of 50% compared to 2021 and a historic low (see Figure 18); The number of announced cross-border M&A transactions is still on a downward trend, with 507 cross-border M&A transactions, a decrease of 6% compared to 2021, especially with a significant reduction in large transactions.

Figure 18 Cross border M&A transaction amount of Chinese enterprises from 2018 to 2022

From the industry distribution of cross-border mergers and acquisitions, Chinese companies rank among the top five in terms of cross-border M&A transaction amounts in TMT, healthcare and life sciences, real estate, hotels and construction, mining and metals, and advanced manufacturing and transportation, with respective amounts of 7.32 billion US dollars, 4.38 billion US dollars, 4.16 billion US dollars, 3.51 billion US dollars, and 3.36 billion US dollars. The year-on-year growth rates are -50%, -46%, -62%, 33%, and -53%, respectively. Except for the mining and metals industry, which achieved positive growth, the other four industries have all experienced significant declines compared to 2021. In terms of transaction volume, the top four industries are TMT, advanced manufacturing and transportation, healthcare and life sciences, and consumer goods, with transaction volumes of 118, 73, 62, and 56, respectively. The real estate, hotel and construction, and financial services industries all had transaction volumes of 51 in 2022. Among them, the advanced manufacturing and transportation industry, consumer goods industry, real estate, hotel and construction industry have all achieved positive growth in transaction volume, with growth rates of 20%, 17% and 38% respectively. TMT、 The transaction volume of the medical and life sciences industry and the financial services industry has declined, decreasing by 21%, 35%, and 30% respectively compared to 2021 (see Figures 19 and 20).

Figure 19 Cross border M&A transaction amount and year-on-year growth rate of Chinese enterprises in different industries in 2022

Figure 20: The number and year-on-year growth rate of cross-border M&A transactions by Chinese enterprises in different industries in 2022

From the regional distribution of cross-border mergers and acquisitions, the overall amount of cross-border M&A transactions conducted by Chinese companies in major markets in 2022 is showing a downward trend. In 2022, Chinese companies continued to be the most active in cross-border M&A transactions in the Asian market, with a transaction amount of $10.75 billion, a decrease of 61% compared to the previous year; The number of transactions was 171, an increase of 4% compared to 2021; The transactions are mainly concentrated in the TMT, real estate, hotel and construction industries, and consumer goods industries. In 2022, the cross-border M&A transactions of Chinese enterprises in Europe amounted to 7.55 billion US dollars, a decrease of 52% compared to 2021; The number of transactions is 170, which is close to Asia and has increased by 6% compared to 2021; The main industry for cross-border mergers and acquisitions in Europe is TMT. In 2022, the amount and quantity of cross-border M&A transactions by Chinese companies in North America reached a historic low of 6.32 billion US dollars, a decrease of 33%, and 82 transactions, a decrease of 42%; Cross border mergers and acquisitions in North America are concentrated in the healthcare and life sciences industries, as well as advanced manufacturing and transportation. In addition, the cross-border M&A transactions of Chinese enterprises in Latin America and Oceania amounted to 1.63 billion US dollars and 1.43 billion US dollars respectively, a decrease of 27% and 41% compared to 2021; The number of transactions was 26 and 45 respectively, an increase of 44% and 50% compared to 2021; Among them, the main investment destination country in Latin America is Argentina, and cross-border mergers and acquisitions in Oceania are mainly distributed in the consumer goods industry and mining and metal industry. In 2022, the number of cross-border M&A transactions by Chinese companies in Africa was 13, a decrease of 43% compared to 2021; The transaction amount was 1.06 billion US dollars, a decrease of 46% compared to 2021; Cross border mergers and acquisitions in Africa are mainly distributed in the mining and metal industries (see Figure 21).

Figure 21 Regional Distribution of Cross border Mergers and Acquisitions by Chinese Enterprises in 2022

From the distribution of countries conducting cross-border M&A activities, in 2022, Chinese companies conducted the largest amount of cross-border M&A transactions in the United States, reaching 6.24 billion US dollars, a year-on-year decrease of 21%; The transaction amount with Singapore was $4.1 billion, a year-on-year decrease of 62%; The Netherlands ranked third in terms of transaction amount, at 2.36 billion US dollars, a year-on-year decrease of 59%; The transaction amounts with the UK, South Korea, and Indonesia decreased by 61%, 78%, and 81% respectively compared to 2021, with transaction amounts of $1.45 billion, $1.06 billion, and $1.01 billion, ranking fifth, eighth, and tenth respectively; The transaction amounts with Japan, Australia, France, and Argentina achieved positive growth, with year-on-year growth rates of 22%, 5%, 863%, and 194%, respectively. The transaction amounts were 2.23 billion US dollars, 1.39 billion US dollars, 1.14 billion US dollars, and 1.03 billion US dollars, ranking fourth, sixth, seventh, and ninth, respectively. In terms of transaction volume, the number of cross-border mergers and acquisitions conducted by Chinese companies in the United States in 2022 was also the highest, with a total of 72 transactions, a year-on-year decrease of 40%; The number of cross-border M&A transactions with the UK, Germany, and India decreased by 7%, 3%, and 15% respectively, with 43, 28, and 11 transactions, ranking second, seventh, and tenth respectively; The number of cross-border mergers and acquisitions conducted by Chinese companies with Australia, Japan, Singapore, South Korea, France, and Argentina in 2022 has all achieved positive growth, with growth rates of 62%, 26%, 16%, 17%, 50%, and 175% respectively. The number of transactions is 42, 39, 37, 28, 18, and 11, with the six countries ranking third, fourth, fifth, sixth, eighth, and ninth respectively (see Figures 22 and 23).

Figure 22 Top 10 Target Countries for Cross border Mergers and Acquisitions of Chinese Enterprises in 2022 (by Transaction Amount)

Figure 23 Top 10 Target Countries for Cross border Mergers and Acquisitions of Chinese Enterprises in 2022 (by Transaction Quantity)

Analysis and Evaluation of China's Foreign Contracted Projects in 2022

（1） Situation of China's Foreign Contracted Projects in 2022

As an important international investment method, outsourcing projects are a key support for China's integration into the process of global economic globalization, and have also brought enormous economic and social benefits to both China and host countries. The Chinese government has provided long-term economic assistance to infrastructure projects in countries such as Africa and South Asia, coupled with the technological and cost advantages of Chinese construction enterprises, which has enabled China to achieve rapid development in foreign contracted engineering projects. In 2022, China's overall foreign contracted engineering business exceeded expectations, achieving a turnover of 1042.49 billion yuan, equivalent to 154.99 billion US dollars, which is basically the same as in 2021 (see Figure 24). In 2022, the newly signed contracts for China's foreign contracted projects amounted to 1702.17 billion yuan, equivalent to 253.07 billion US dollars (see Figure 25).

Figure 24: Revenue of China's Foreign Contracted Projects Completed from 2018 to 2022

Figure 25 New Contract Amount for China's Foreign Contracted Projects from 2018 to 2022

（2） China's foreign contracted projects under the "the Belt and Road" Initiative in 2022

The construction of the "the Belt and Road" has shown vigorous vitality, providing new impetus for the opening and cooperation of the international community and the recovery of the world economy. In 2022, the turnover of foreign contracted projects jointly constructed by Chinese enterprises in the "the Belt and Road" will be 84.94 billion US dollars, a year-on-year decrease of 5.3%, accounting for 55% of the total in 2022; The newly signed contract amount for foreign contracted engineering projects is 129.62 billion US dollars, a decrease of 3.3% from 2021 and accounting for 51% of the total amount in 2022 (see Figure 26).

Figure 26 China's Foreign Contracting Projects under the "the Belt and Road" Initiative from 2018 to 2022

（3） Structural Distribution of China's Foreign Contracted Projects in 2022

From the market distribution of China's foreign contracted projects, from January to November 2022, China's foreign contracted project business is mainly concentrated in the Asian and African markets. In terms of the newly signed contract amount for foreign contracted projects, the newly signed contract amount in the Asian market was 95.87 billion US dollars, an increase of 5.0% year-on-year; The newly signed contract amount in the African market is 53.01 billion US dollars, a year-on-year decrease of 15.1%.

From the domestic regional distribution of newly signed contracts for China's foreign contracted projects, the newly signed contracts for foreign contracted projects in the eastern region of China from January to November 2022 amounted to 54.61 billion US dollars, an increase of 7.2% year-on-year; The newly signed contracts for foreign contracted projects in the central region amounted to 30.38 billion US dollars, an increase of 1.3% year-on-year; The newly signed contracts for foreign contracted projects in the western region amounted to 14.44 billion US dollars, an increase of 5.5% year-on-year; The newly signed contract amount for foreign contracted projects in the three provinces of Northeast China was 3.14 billion US dollars, a year-on-year decrease of 34.3%.

From the industry distribution of newly signed contracts for China's foreign contracted projects, industries such as transportation, general construction, power engineering, and petrochemicals remain the main advantageous areas for China's foreign contracted projects. However, due to geopolitical tensions and rising global costs of energy, food, and building materials, the power engineering and water conservancy construction industries are facing significant pressure, resulting in a decrease in completed revenue and newly signed contract amounts.

（4） Outlook for China's Foreign Contracted Projects

In the future, facing a more severe international market environment, Chinese foreign contracted engineering enterprises may face many challenges in business market development and new project promotion. However, according to data released by the Ministry of Commerce, China's foreign contracted projects still showed a good development trend from January to April 2023. Among them, China's completed revenue from foreign contracted projects was 287.99 billion yuan, an increase of 10.6% compared to the same period last year.

Such achievements are mainly due to China's high-level opening up, the construction of the "the Belt and Road" and the improvement of the international competitiveness of Chinese enterprises. In the "the Belt and Road" co built country, the turnover of overseas contracted projects of Chinese enterprises reached US $23.05 billion, accounting for 54.9% of the total turnover of overseas contracted projects in the same period; The newly signed contract amount reached 29.74 billion US dollars, accounting for 50.2% of the total newly signed contracts for foreign contracted projects during the same period. During the "14th Five Year Plan" period, the "the Belt and Road" co built country will also become the focus of China's foreign contracting projects. In addition, Chinese foreign contracting engineering enterprises have also shown strong competitiveness in the international market. According to the 2022 "Top 250 International Contractors" list released by the US "Engineering News Record", 79 mainland Chinese enterprises were listed, of which 4 entered the top 10, namely China Communications Construction (third), China Power Construction (sixth), China State Construction (seventh), and China Railway Construction (tenth).

Therefore, despite the challenging international environment faced by foreign investment, with the promotion of China's high-level opening up and the high-quality construction of the "the Belt and Road", China's overseas contracting projects still have a large space for development.

Five prospects and suggestions

（1） Outlook

1. The world economic environment is highly uncertain, and economic globalization continues to regress

The current global economic recovery momentum is still insufficient, global inflation rates are still high, the fragility of international financial markets is increasing, and anti globalization continues, bringing many challenges to China's foreign trade. The International Monetary Fund lowered its forecast for global economic growth in 2023 to 2.8% in its World Economic Outlook report released in April 2023, a decrease of 0.6 percentage points from the 3.4% growth rate in 2022. It is expected that the growth rate in the next five years will remain at around 3%, lower than the average level of 3.8% in the past 20 years; Meanwhile, the International Monetary Fund has lowered its economic growth forecast for the United States in 2023 to 1.7%, a decrease of 4.0 percentage points from 2022; Lowering the economic growth forecast for the Eurozone to 0.8%, a decrease of 2.7 percentage points from 2022; Lowering Japan's economic growth forecast to 1.3%; Reduce the economic growth expectations for emerging markets and developing economies to 3.9%.

The global inflation rate is still at a high level, and the commodity prices are far higher than those before the COVID-19 epidemic. The International Monetary Fund predicts that global inflation rates will fall to 7.0% in 2023, a decrease from 8.7% in 2022. However, the decline in core inflation rates will take longer, and most countries' inflation rates will remain at a high level until 2025.

In addition, the continued implementation of tight monetary policies by developed economies has also led to increasing fragility in the international financial market. In March 2023, Silicon Valley Bank and Signature Bank in the United States closed one after another. In May, Credit Suisse was acquired by UBS Group, and First Republic Bank of the United States was acquired by JPMorgan Chase Bank. The International Monetary Fund pointed out that the significant interest rate hikes by central banks in many countries and the rising pressure in the financial sector will hinder economic recovery.

Affected by geopolitical conflicts, economic globalization continues to regress, cross-border flows of global goods, capital, and labor decrease, and trade tensions continue to intensify. According to statistics from the World Trade Organization, its member countries have implemented more new trade restriction measures in recent years. From mid October 2021 to mid October 2022 alone, 214 goods trade restriction measures were implemented, covering approximately $278 billion in trade volume. The International Monetary Fund has pointed out that with the increase of global trade restrictions, the weakening of cross-border trade links will have a significant impact on low-income countries and emerging economies.

2. The Chinese economy continues to recover and improve, and the quality of development steadily improves

From the data of the first quarter of 2023, it can be seen that the Chinese economy has withstood pressure and developed positively, and the economic structure continues to improve. In the first quarter of 2023, China's gross domestic product increased by 4.5% year-on-year, with the tertiary industry growing by 5.4% year-on-year, contributing 69.5% to economic growth; The added value of industries above designated size increased by 3.0% year-on-year; Fixed assets investment (excluding farmers) increased by 5.1% year on year, of which private investment increased by 0.6% year on year, accounting for 54.6% of the total investment, and high-tech industry investment increased by 16.0% year on year, with a significant increase. The consumption potential of residents is gradually being released. In the first quarter of 2023, the total retail sales of consumer goods in society increased by 5.8% year-on-year, with emerging consumption methods such as online retail maintaining rapid growth. The online retail sales of physical goods increased by 7.3% year-on-year, accounting for 24.2% of the total retail sales of consumer goods in society. The business completion volume of express delivery service enterprises increased by 11.0% year-on-year. The contribution rate of final consumption expenditure to economic growth in the first quarter of 2023 reached 66.6%, driving economic growth by 3.0 percentage points, and the fundamental role of consumption in promoting economic growth continues to be highlighted.

3. Service trade maintains growth and becomes a new driving force for building a strong trading nation

In the first quarter of 2023, service trade continued to maintain a growth trend, with the total import and export volume increasing by 8.7% year-on-year, of which the export volume decreased by 4.7% year-on-year and the import volume increased by 21.6% year-on-year. The total import and export volume of travel services increased by 56.6% year-on-year in the first quarter of 2023, accounting for 21.3% of the total service trade volume. Travel services are expected to become the largest service trade sector in China again. The total import and export volume of knowledge intensive services increased by 12.8% year-on-year in the first quarter of 2023, accounting for 43.9% of the total service trade volume, further optimizing the structure of service trade.

From a global perspective, the growth performance of travel service trade is relatively prominent, but due to the reduction in global goods trade and the decrease in container shipping prices, the growth trend of transportation service trade may not be sustainable. However, global digital trade has shown a good development trend. In 2022, the global export scale of digital services exceeded 4 trillion US dollars, and it is expected that the proportion of digital service exports in global service trade exports will exceed 65% by 2023. China should seize this opportunity, accelerate the development of digital trade, continue to promote deep level reform, high-level opening up, and all-round innovation in service trade, and provide strong impetus for building a strong trading nation.

4. Foreign trade withstands pressure, maintains stability and improves quality

Despite facing an external environment full of uncertainty and challenges, China's foreign trade has achieved a good start in 2023, laying a solid foundation for achieving the goal of maintaining stability and improving quality. From January to May 2023, China's total import and export volume of foreign trade increased by 4.7% year-on-year, with exports growing by 8.1% year-on-year and imports growing by 0.5% year-on-year. The trade surplus expanded by 38.0%. In the first quarter of 2023, non-financial outward direct investment increased by 26.3% year on year, of which non-financial outward direct investment in the "the Belt and Road" co construction countries increased by 9.5% year on year, accounting for 18.3% of the total non-financial outward direct investment. In the first quarter of 2023, the completed revenue of foreign contracted projects increased by 10.6% year-on-year, and the amount of newly signed contracts increased by 2.0% year-on-year. In addition, the quality of foreign investment in the first quarter of 2023 has significantly improved, with the actual use of foreign investment in high-tech industries increasing by 18.0% year-on-year.

（2） Suggestion

1. Continuously promote high-level opening up to the outside world and unleash the potential for foreign trade growth

In 2023, China should continue to implement RCEP with high quality, actively promote the signing of more high standard free trade agreements, deeply promote the smooth trade of the "the Belt and Road", and constantly expand the space for foreign trade development. At the same time, China needs to promote the comprehensive recovery of domestic offline exhibitions, organize exhibitions such as the Canton Fair, China International Import Expo, and China International Fair for Trade in Services, and build a high-level platform for opening up to the outside world. In addition, the comprehensive cancellation of the registration of foreign trade operators has further optimized the business environment. China should continue to firmly promote trade liberalization and facilitation, strengthen market service guarantees for foreign trade enterprises, and unleash the growth potential of foreign trade.

2. Accelerate the development of digital trade and cultivate new driving forces for foreign trade growth

The digital economy has become a new growth point and important competitive advantage in the global economy. In 2023, China should seize the opportunity to accelerate the development of digital trade, build a global trade digital navigation area in the Guangdong Hong Kong Macao Greater Bay Area, and promote the digital empowerment and upgrading of all aspects of trade. At the same time, China should rely on the Cross border E-commerce Comprehensive Pilot Zone to further improve the logistics infrastructure of cross-border e-commerce, guide cross-border e-commerce enterprises to operate in compliance, promote the sustainable and healthy development of new forms and models of foreign trade, and provide new impetus for building a strong trading nation.

3. Utilize fiscal and financial support to stabilize the scale of foreign trade

Faced with the still severe situation of foreign trade, China needs to make good use of central government funds to support the stable stock and expansion of foreign trade. On the one hand, we should actively meet the foreign trade financing needs of small and medium-sized enterprises, increase support for import and export credit, and encourage banks and insurance institutions to expand cooperation in policy financing and credit enhancement; On the other hand, we need to further leverage the role of export credit insurance, expand the scale and coverage of underwriting. In addition, we need to optimize cross-border settlement services, expand the scale of RMB settlement for cross-border trade, and better meet the needs of foreign trade enterprises for exchange rate hedging and cross-border RMB settlement.

4. Optimize the development environment of foreign trade and enhance the level of trade facilitation

In the face of the increasingly unstable foreign trade environment, China needs to strengthen training and guidance for foreign trade enterprises, help them cope with unreasonable foreign trade restrictions, and provide warning and legal services. At the same time, we need to improve the level of trade facilitation, increase efforts to cultivate credit for foreign trade enterprises, ensure efficient and smooth transportation of foreign trade goods, enhance port clearance efficiency, and optimize the development environment for enterprises' foreign trade.