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China’s major trading provinces showcase economic resilience and vitality

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By Li Gang, Shen Wenmin, Wang Weijian, Dou Hanyang

In a landmark development for Chinese automotive exports, BYD’s vehicle carrier Changzhou recently delivered over 5,800 new energy vehicles (NEVs) to Argentina’s Port of Zarate. 

This shipment represents both the largest single import of Chinese-branded electric vehicles into Argentina and marks BYD’s pioneering entry into the market through a vertically integrated approach featuring a self-operated fleet, direct sales model, and full product lineup.

This achievement reflects China’s broader foreign trade momentum. In 2025, the country’s total goods imports and exports reached 45.47 trillion yuan (about $6.59 trillion), up 3.8 percent year on year, consolidating the country’s position as the world’s largest trader in goods.

Leveraging their geographic advantages and industrial strengths, provincial-level regions across the country reported robust trade performance.

Guangdong, China’s leading province in foreign trade, recorded 9.49 trillion yuan in total foreign trade in 2025, ranking first nationwide for the 40th consecutive year. A significant milestone was achieved as high-tech product exports exceeded 1 trillion yuan for the first time, reaching 1.14 trillion yuan, signaling a clear move up the value chain.

Demonstrating industrial cluster strength, Jiangsu’s trade transformation is exemplified by shipments like the 36 wind turbine blades recently exported from Jiangyin Comprehensive Bonded Zone by Chinese company Envision. In 2025, mechanical and electrical products exceeded 70 percent of the province’s exports for the first time, with leading sectors including electrical equipment and shipbuilding.

Digital trade is reshaping Zhejiang’s commerce, highlighted by the launch of the Global Digital Trade Center in Yiwu. In 2025, the sampled transaction value at the Yiwu International Trade market is expected to exceed 320 billion yuan, with a daily average of over 4,000 international buyers, the highest level in a decade. Zhejiang’s total foreign trade reached 5.55 trillion yuan in 2025, with digital transformation emerging as a defining feature.

According to Jiang Zhao, associate research fellow at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, Guangdong, Jiangsu, Zhejiang, Shanghai, Shandong, Beijing and Fujian together recorded 34.11 trillion yuan in foreign trade in 2025, contributing more than half of the country’s total trade growth. 

China’s exports, he noted, are shifting from a focus on expanding volume to pursuing both scale and quality, with high-tech and technology-intensive products playing an increasingly prominent role.

Amid a shifting and increasingly complex global trade landscape, regions across China are accelerating their push for greater international market diversification. By deepening engagement 

have effectively hedged against the risks of overreliance on any single market.

After a 14-day journey across Eurasia, the first China-Europe freight train of the year departing from the Guangdong-Hong Kong-Macao Greater Bay Area arrived in Malaszewicze, Poland. Among the 110 standard containers were semiconductor display panels and key components of Chinese home appliance giant TCL, which were swiftly transferred to the company’s television factory in Zyrardow in central Poland.

In recent years, TCL has focused on exporting industrial capabilities rather than just products, extending the strengths of Chinese manufacturing to major global markets and building a more open, collaborative and mutually beneficial innovation ecosystem with local partners, said Li Dongsheng, chairman of TCL.

Zhejiang’s trade expansion has been driven in particular by emerging markets. In 2025, ASEAN surpassed the European Union for the first time to become Zhejiang’s largest trading partner, with trade value reaching 869.07 billion yuan, up 16.5 percent. 

Yiwu’s small commodities were shipped to more than 20 countries in Central Asia and Europe via the “Yiwu-Xinjiang-Europe” freight train service, which has helped form a global trading network where the city sources from the world and sells to the world.

As an international shipping hub, Shanghai has strengthened its role in linking domestic and global markets. In 2025, its trade with Belt and Road partner countries grew 12.1 percent year on year, supported by coordinated China-Europe freight train service and ocean shipping routes.

Empowered by digital technologies, upgraded logistics systems and an improved policy environment, Chinese foreign trade enterprises are overcoming traditional constraints in time and space, enabling more firms to participate in global competition.

Jiangsu has pioneered a model combining industrial e-commerce with supply chain finance. A comprehensive cross-border e-commerce service platform in the province’s Suzhou integrates customs clearance, logistics, tax rebates and financing services, driving a 35 percent increase in cross-border e-commerce exports among small and medium-sized enterprises in 2025.

Zhejiang has advanced new trade formats powered by digital trade and market procurement. In 2025, exports through market procurement, cross-border e-commerce and bonded maintenance exceeded 900 billion yuan, ranking first nationwide.

“China’s foreign trade innovation is gaining stronger momentum, with its advantages becoming more pronounced, trading partners more diversified, and resilience more robust. This will inject greater certainty into global economic and trade development,” said Liao Bingguang, a researcher with the Guangdong Academy of Social Sciences.

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Shanghai pioneers AI-driven scientific research paradigm

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By Jiang Hongbing, People’s Daily

In June 2023, Fudan University launched its campus-based cloud intelligent computing platform. 

Building on this initiative, Professor Qi Yuan and colleagues proposed to Shanghai’s municipal leadership that China develop large-scale scientific AI models, drawing inspiration from leading global projects. 

Their proposal received approval within a week. By September of that year, the Shanghai Academy of AI for Science (SAIS) was officially established.

More than two years later, the institute has become a benchmark for “new research infrastructure,” with a steady stream of breakthroughs.

On March 1, 2026, SAIS unveiled super scientific research partner Dasheng, an intelligent agent capable of autonomously breaking down research tasks and advancing projects based on natural language instructions.

Dasheng is highly versatile. It supports research across life sciences, earth sciences, humanities and other fields. Powered by strong foundational model tools, it can even generate multiple parallel “instances” to handle complex and time-intensive tasks simultaneously.

Dasheng is developed under the NovaInspire platform jointly built by SAIS, Fudan University, and Shanghai-based AI company INF. The platform made its debut at the World Artificial Intelligence Conference 2025, where it introduced the concepts of “scientist-centered design” and “accelerating scientific discovery.” 

Through continuous iteration, the platform has integrated over 400 scientific models and tools, accumulated 22 petabytes of high-value data, and incorporated more than 500 million academic papers and patents, generating a growing number of innovations.

At SAIS, several domain-specific scientific models — named after figures from Chinese mythology — are designed to address key scientific challenges in high-value industrial applications.

In materials science, the Suiren model has built a candidate library of 12,000 molecules to train generative models, accelerating the discovery of new electrolyte formulations for lithium batteries.

In drug design, the Nvwa RNA model, combined with a proprietary siRNA database, has overcome key bottlenecks in siRNA drug development. Its goal is to evolve into a “living” scientific AI infrastructure, one that can be repeatedly used and continuously improved by scientists and industry experts.

In earth sciences, alongside the FuXi weather model, SAIS has also developed PI@Climate, a large language model trained on data spanning more than ten primary disciplines. As China’s self-developed climate science model, it is already providing intelligent support for climate research, international climate negotiations, and policy-making.

According to Wu Libo, assistant president of Fudan University and chair of SAIS, the institute’s exploration is helping universities systematically validate a new paradigm for future scientific research. SAIS has already established in-depth collaboration with 43 teams at Fudan University, supporting the creation of 18 interdisciplinary centers for scientific intelligence. 

“We aim to break down the boundaries between disciplines, engineering, platforms, and talent development,” Wu said.

SAIS fosters innovation through initiatives like its “research bar,” where young researchers can receive a free drink in exchange for sharing their ideas and innovations — an initiative that reflects a vibrant and youth-driven culture.

The institute’s multidisciplinary team averages 33 years in age, About 31 percent recruited from overseas universities and leading AI labs, while 40 percent bring extensive engineering experience from top tech companies. “Our greatest strength lies in these young talents,” Wu noted.

What attracts such a dynamic group of innovators?

Sun Xiuyu, an AI scientist in earth sciences, pointed out that under an organized research framework, SAIS provides participating teams with high-quality computing resources and considerable research autonomy, enabling young researchers to turn ideas into reality through continuous experimentation.

Wang Wenli, a materials science researcher, values the institute’s collaborative environment, where scientists, AI experts, and engineers interact face-to-face on a regular basis. “What we create here naturally integrates the genetic strengths of multiple disciplines,” she said.

Jiang Ruoxi, an AI scientist at SAIS, added, “What initially attracted me was the close integration with industry, but the speed of progress has exceed all expectations.”

“Our goal is to build a world-class scientific intelligence institution by 2030,” said Qi Yuan, president of SAIS, expressing strong confidence in the institute’s future.

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Why Chinese transformers are in high demand globally

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By Ding Yiting, People’s Daily

Transformers, seemingly unremarkable devices, have recently become highly sought-after products worldwide. 

According to China’s General Administration of Customs, China’s transformer exports exceeded 64.6 billion yuan ($9.29 billion) in 2025, up nearly 36 percent year on year. The average export price per unit reached about 205,000 yuan, roughly 1/3 higher than the previous year. 

Many transformer manufacturers already have full order books, with some orders for data-center applications scheduled to run through 2027.

What drives this strong global demand for Chinese transformers? The most immediate factor is surging international need. 

Developed economies such as Europe and the United States are upgrading aging power grids. Meanwhile, emerging markets face rising electricity consumption and increasing shares of clean energy, accelerating investment in grid infrastructure. Concurrently, the rapid expansion of overseas computing infrastructure, including data centers, further fuels demand. These converging trends propel the growth of China’s transformer exports.

With numerous companies worldwide competing in this expanding market, why has China emerged as the world’s top transformer producer? Three key words hold the answer. Together, they explain not only why Chinese transformers are selling well, but also the deeper logic behind the global competitiveness of Chinese manufacturing sector.

First, “speed” — made possible by a highly integrated industrial chain.

The competitiveness of a product depends not only on the product itself but also on the industrial ecosystem behind it. China has established the world’s most comprehensive transformer manufacturing system, encompassing everything from raw materials like copper and aluminum to critical components such as transformer cores and on-load tap changers. This system accounts for roughly 60% of global production capacity. 

Close coordination between upstream and downstream industries, together with a highly controllable supply chain, allows Chinese companies to respond rapidly to changes in demand. Their delivery times are often far shorter than those of European and American manufacturers, whose lead times typically range from 18 months to two years.

The advantages of a complete industrial system extend beyond transformers. In robotics, for example, China has steadily developed a comprehensive supporting ecosystem, from high-precision reducers and high-performance servo systems to intelligent controllers. In the Yangtze River Delta, some robots now use 100 percent domestic core components, reducing costs by about 40 percent. In 2025, China’s exports of industrial robots exceeded imports for the first time.

Industrial competition cannot rely on isolated efforts. By leveraging its industrial scale and well-established supporting industries, China has built secure and efficient industrial and supply chains, enabling its enterprises to thrive in the global market and securing the strong foundation of Chinese manufacturing.

Second, “adaptability” — the ability to accurately identify and respond to market demand.

Innovation is reflected not only in technological upgrades but also in products that dynamically adapt to market needs. To satisfy environmental standards in European and American markets, Chinese companies have developed vegetable-oil transformers. For data center applications, they have designed solid-state transformers that occupy less space while offering higher efficiency. By focusing on market requirements and addressing specific customer needs through specialized and customized production, China’s transformer industry has grown rapidly.

Some foreign businesspeople remark that Chinese entrepreneurs have an exceptionally sharp eye for market opportunities: wherever demand appears, Chinese suppliers are often among the first to respond. 

In the small appliance sector, multifunctional heaters, capable of warming a room on all sides while heating tea on top, have become popular in Japan and South Korea. In heavy machinery, cranes equipped with desert tires and special fire-extinguishing systems have gained popularity in Middle Eastern markets. These examples illustrate a simple principle: following the market and responding to demand can open wider global opportunities for Chinese manufacturers.

Third, “reliability” — supported by the vast and diverse application scenarios of Chinese market.

Application scenarios are valuable and often scarce resources for innovation. China’s domestic projects, from power grid upgrades to the construction of computing infrastructure, have provided transformer companies with real-world testing grounds to overcome technological challenges. Over the past five years, the State Grid Corporation of China has completed and put into operation multiple ultra-high-voltage (UHV) transmission projects, helping the country secure technological leadership in UHV transmission and intelligent transformers.

Diverse domestic scenarios, ranging from urban governance to logistics networks, are spurring the rapid development of low-altitude economy. Challenging environments such as high-altitude regions, deserts and Gobi areas, and low-wind-speed zones have pushed wind power companies to develop customized technological solutions. 

China’s enormous market size and rich application scenarios allow products to be tested extensively at home before entering international markets, ensuring both reliability and practicality.

Amid the uncertainties of a rapid changing external environment, it is precisely these strengths —  solid industrial foundations, strong innovation momentum and scenario-based advantages — that give Chinese companies the confidence to compete on the global stage. 

They also highlight an important lesson: regardless of shifting market trends, companies that strengthen their capabilities, sharpen their competitiveness and continuously drive industrial upgrading will be well positioned to succeed in the long run.

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‘Open-source’ nature of Chinese modernization and its global significance

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By Zheng Yongnian

During this year’s “two sessions,” the annual meetings of China’s top legislature, the National People’s Congress, and top political advisory body, the Chinese People’s Political Consultative Conference National Committee, Chinese lawmakers approved the outline of the 15th Five-Year Plan (2026-2030) for national economic and social development. This plan provides a clear blueprint for China’s modernization path over the next five years, attracting significant global attention.

The world is closely watching how China, deeply integrated into the global economy, will continue contributing to international growth. The increasing global significance of China’s development stems fundamentally from the “open-source” character of its modernization approach.

Chinese modernization uniquely blends distinct national characteristics with the universal goals of modernization. This synthesis is made possible by China’s pursuit of progress through high levels of openness, justifying the application of the “open-source” concept. In technology, “open-source” denotes an open, collaborative model where designs are publicly accessible for modification, improvement, and sharing. More broadly, it represents a philosophy centered on free information exchange, rapid experimentation, and cooperative innovation.

Chinese modernization places China as the primary subject, emphasizing that modernization is pursued by China, not imposed upon it. Intellectually, China treats modernization as a practical endeavor, not a rigid ideology. Practically, it maintains an open attitude, drawing on the outstanding achievements of human civilization while firmly retaining its distinct subjectivity and autonomy. It adapts and integrates these insights in light of its own civilization, culture, and national conditions.

The “open-source” nature of Chinese modernization rests on three pillars. First, Chinese path to modernization possesses its own fundamental principles and origins. Second, China advances its modernization with an open mindset and practice, promoting mutual progress with the modernization processes of other countries and regions. Third, when others learn from China they primarily adopt an approach emphasizing autonomy, self-reliance, and pragmatic adaptation.

According to the report to the 20th National Congress of the Communist Party of China, Chinese modernization is the modernization of a huge population, of common prosperity for all, of material and cultural-ethical advancement, of harmony between humanity and nature and of peaceful development. This represents one of the most comprehensive and rigorous definition of modernization to date.

Modernization of a huge population carries at least three key implications: people are the central actors of modernization; China’s enormous population makes its modernization far more challenging than in Western countries; and Chinese modernization represents a highly organized form of collective modernization.

Modernization of common prosperity for all corrects the “prosperous but unequal” model found in some Western countries. Modernization of material and cultural-ethical advancement addresses the imbalance often seen in Western modernization, prioritizing both material and spiritual progress. Modernization of harmony between humanity and nature avoids the old path followed by some Western countries of “polluting first and cleaning up later.” Modernization of peaceful development steers clear of the colonial and imperialist patterns that marked early Western modernization.

These five defining features encompass three dimensions of modernization: material, institutional, human. At its core, modernization is about human development. Institutional modernization is crucial, serving as a bridge linking material progress and human development. Institutions ensure that material and human modernization progress in a coordinated manner.

Chinese modernization is a rational choice grounded in China’s own development experience, seeking a dynamic balance among material progress, institutions development, and human advancement.

Adhering to opening up, cooperation and mutual benefit is an inherent requirement of Chinese modernization. Openness is the prerequisite for “open source.” It is precisely through opening up that China has effectively leveraged its comparative advantages, generating strong momentum for modernization.

Chinese modernization has advanced alongside the reform and opening up. Domestic reform and international opening reinforce each other, forming a model of “open-source modernization”: openness promotes reform, while innovation translates reform into practice.

China’s opening up has entered a new phase of greater depth, characterized by two distinct features: high-standard institutional opening up and unilateral opening up. Institutional opening up focuses on aligning domestic rules, regulations, management standards, and norms with international practices. Unilateral opening up represents an autonomous choice made by China that does not require reciprocal commitments from other parties.

Unlike some Western countries that have historically rescinded access to development resources after achieving success (“kicking away the ladder”), China, while achieving its own development, is willing to “offer a ladder” to help others progress. More importantly, China is helping improve global governance through its “open-source” modernization.

China has proposed the Belt and Road Initiative as well as the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative. It firmly supports the international system with the United Nations at its core and actively participates in global economic, security and development governance. 

China is also working to enable multilateral platforms such as the G20, APEC, and the BRICS, helping countries, especially those in the Global South, improve infrastructure, enhance industrial capacity, improve livelihoods and strengthen development resilience.

The “source” provided by Chinese modernization offers inspiration for more countries seeking independent development paths. The “open-source” nature of Chinese modernization not only supports China’s own sustainable development but also creates new opportunities for other countries and contributes to a better future for humanity.

(Zheng Yongnian is the dean of the School of Public Policy at The Chinese University of Hong Kong, Shenzhen, and director of the Institute for International Affairs, Qianhai.)

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