Illustration: Xia Qing/Global Times

Numerous factors contribute to the continued growth of China's foreign trade amid the West's trade protectionism, particularly the US-launched trade war against China. However, the primary reason is the increase in exports from China's western region.

Under pressure from the US and part of the West, China is pursuing the trade and cooperation westward under the Belt and Road Initiative (BRI) through the development of manufacturing in the country's western region, so as to make China's foreign trade structure more rational.

Foreign trade by China's western region, which includes 12 provinces and one municipality, reached 1.93 trillion yuan ($270 billion) in the first half of 2024, an increase of 10.2 percent year-on-year, making it the region with the fastest growth in China's foreign trade, state broadcaster China Media Group reported on Sunday.

The significant increase in trade activity in China's western region exemplifies the country's strategic adaptation to the challenges posed by rising protectionism in the global trade environment. The limitations of the traditional foreign trade model highlight the need for China to optimize its trade structure and explore new market opportunities.

In the past, China's eastern coastal region was dominant in the country's foreign trade, but now the western region is experiencing a notable increase in foreign trade, signaling a shift in China's foreign trade patterns toward narrowing regional development disparities.

The growth of foreign trade in the western region benefits from the promotion of Chinese government's western development policy, while also reflecting the development potential and market vitality of the western region. This resilience is a key factor to ensure that China's foreign trade remains robust and resilient in the long run.

With the deepening of the national strategy of western development, China's western region is evolving into a new frontier for China's engagement with the global economy. In particular, the ongoing enhancement of infrastructure in the western region plays a crucial role in driving regional economic growth and boosting foreign trade.

The development of transportation networks, in particular the introduction of the China-Europe freight trains and the New International Land-Sea Trade Corridor, has significantly improved logistics efficiency in the western region, cutting trade expenses and strengthening ties with the international market. The China-Europe freight train now serves 110 cities across Europe and Asia, while the New International Land-Sea Trade Corridor connects 490 ports in 120 countries and regions, as reported by Xinhua. These transportation projects, akin to economic arteries, have infused China's western region with a continuous flow of vitality.

The growth of the western region's foreign trade is also boosted by the region's pivotal role in the BRI. Leveraging its unique geographical position and abundant resources, the western region has emerged as a crucial gateway linking the Eurasian continent and attracting numerous enterprises to engage in international trade via this region.

By tapping into new markets and regions along the BRI routes, the western region can offset shocks from Western markets amid increasing protectionism and strengthen its resilience against potential risks.

Furthermore, as industries in China's eastern region continue to upgrade and labor costs continue to rise, the shift of labor-intensive industries to the western region has emerged as a significant driver of local economic growth. The western region, with its plentiful natural resources, lower labor costs and enhanced infrastructure, offers ideal conditions for these industries. This transfer will stimulate local employment, enhance the economic structure and create new opportunities for foreign trade growth.

The western region is also facing challenges when it comes to advancing foreign trade. First, the foreign trade structure in the region remains relatively simple, heavily dependent on traditional sectors like machinery and electronics, and lacking in exports of high-value products. Second, there are internal imbalances in foreign trade development in the western region, with some regions experiencing lower trade levels and standards, necessitating additional support. Third, uncertainties in the global environment and the increase in international trade protectionism pose challenges to foreign trade in the western region.

Therefore, to further promote the development of foreign trade in the western region, it is imperative to implement more focused initiatives such as expediting the modernization and restructuring of the industrial sector, as well as providing increased support and guidance to local businesses to boost their global competitiveness.