According to statistics newly released by China's General Administration of Customs, China's total imports and exports in 2014 attained a value of 26.43 trillion yuan, up 2.3 percent from 2013. Imports fell, while exports maintained growth and extended their reach - low-end "Made in China" products are being replaced by the export of capital.

Zheng Yuesheng, spokesperson for the General Administration of Customs, explained that in 2014 the competitive advantage of low cost manufacturing continued to diminish, and falling investment from developed countries in the manufacturing industry has also restrained foreign trade.

Although foreign trade growth of 2014 did not quite meet expectations, China's performance is relatively good among major economies, and the quality of foreign trade is improving. According to the analysis of the General Administration of Customs, on the export side, Chinese products represent a larger share of the international market, and on the import side, major trade partners have become more dependent on the Chinese market. China has played an important role in the recovery of the global economy. The proportion of bilateral trade between China and emerging markets has increased, which shows that positive progress has been made in market diversification.

Due to the rising costs of labor and raw materials, the "Made in China" products which used to be cheap and sell well all over the world no longer have any competitive advantage. The export of capital, including high-value-added products, is gradually taking the place of cheap "Made in China" products.

Gao Hucheng, Minister of Commerce, said that according to the strategic concept of "the Silk Road Economic Belt and the 21st-Century Maritime Silk Road", products are exported along with capital. "A large proportion of China's investments abroad are realized by recipient countries purchasing Chinese made equipment. Now, in high-speed rail, thermal power, hydropower and many other fields, Chinese equipment provides the best cost/benefit return. That is why many developed countries are also choosing Chinese equipment. Along with our equipment, we are also exporting our after-sales service," said Gao.

In recent years, China's capital exports have increased significantly both in terms of product quality, such as production capacity and technology, and in terms of capital, such as the Silk Road Fund, BRICS Development Bank, Asia Infrastructure Investment Bank, and overseas acquisitions and mergers. China is transforming from a major trading nation to a major financial power and expanding capital exports is the only route. China has now reached the stage of being an exporter of capital, and will soon become a net exporter of capital. 

The article is edited and translated from《资本输出成为外贸新亮点》, source: People's Daily Overseas Edition, author: Luo Lan.