China's Key Imports: 6 Strategic Commodities

Based on a report from World’s Top Exports, China's portfolio of imported goods, a beacon of its economic strategy, highlights six commodities that cumulatively form a substantial $778 billion, a figure representing 29% of its total imports.

From oil and gas to copper and iron, China imports the second most goods every year in the entire world. Let’s dive deeper into the significance of these six commodities, showcasing their critical roles in China's economy.

Crude Oil: $366B 

Dominating the import charts for China, crude oil's $366B footprint in China's economy is a clear indicator of its indispensable role as fuel has become more and more important for them. This staple of energy not only powers the nation's vast industrial sector but also meets the energy needs of its burgeoning urban landscapes. Furthermore, the amount of oil imported into China has grown 41% year-over-year, showing how much the need for crude oil grew during the global pandemic. This reliance on crude oil underscores China's growing industrialization and modernization, reflecting its status as a global economic powerhouse hungry for energy resources.

Iron Ores and Concentrates: $128B 

Iron ore imports, valued at $128B, are the lifeline of China's steel production, which in turn, fuels its construction boom and manufacturing prowess. But the 30% decrease year-over-year in imports of iron shows that the importance of manufacturing in China is waning. However, this investment in iron ore reflects China's strategic focus on infrastructure development and its ambition to maintain supremacy in global steel production, a sector pivotal for its economic growth and international trade dominance.

Petroleum Gases: $91B

Petroleum gasses, with an import value of $91B, are another cornerstone of China's energy strategy. Their growth of 48% year-over-year again shows the importance of gasoline for the powering of Chinese infrastructure. These gasses play critical roles across various sectors, from heating homes and powering industries to being key feedstocks for the petrochemical industry. Their import highlights China's multifaceted approach to energy security and its reliance on diverse energy sources to fuel its economic engine.

Gold (Unwrought): $77B 

With $77B of gold imports, showing a 62% increase from last year, it signifies more than just a transaction; it embodies China's strategic financial planning. By bolstering its gold reserves, China not only diversifies its investment in their central bank but also fortifies its economic stability, showing a prudent approach to safeguarding its economic future against global financial uncertainties.

Soya Beans: $61B Agricultural Necessity and Trade Dynamics

Soya beans, crucial for both human consumption and as feed in China's massive livestock industry, represent a $61B import segment, a 14% increase year-over-year. This reflects China's interdependence with global agricultural markets and underscores the importance of securing a stable food supply chain, vital for its population and burgeoning food and meat industry.

Copper Ores and Concentrates: $56B The Conductor of Modernization

Importing $56B worth of copper ores and concentrates, a modest 1% decrease from the previous year, China secures a fundamental resource for its electrical and electronic industries. Copper's pivotal role in infrastructure, technology, and renewable energy sectors mirrors China's ambitions in technological advancement and modernization, aligning with its vision for a future-oriented economy.

The Future of China’s Demand on the Global Economy

As the world’s second largest economy, and leader for imports such as crude oil, iron ore, soybeans, and copper ore, China’s growth doesn’t seem to be slowing down any time soon. 

In January and February 2024, according to AP, imports rose 3.5% for China, compared to 0.2% growth in December, while the trade surplus was $125B. This growth beat estimates, showing that demand may be improving as Beijing continues to speed up its economic recovery from the pandemic.

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