China is the largest trading partner of 151 countries; will its influence decline?

China was once plagued by poverty. A large number of people were addicted to opium. Years of domination by foreign powers left the country in deep distress. Shanghai, too, was not the glittering global trading hub it is today.

In their book Journey to a War, WH Auden and Christopher Isherwood wrote that, when viewed from the river, the tall buildings made Shanghai look like a big city. But the reality was different: it was not as impressive on the inside as it looked from the outside. This was the state of Shanghai in 1939. But those days are gone. China is now the world’s second-largest economy and the largest trading partner of 151 countries. Shanghai is also one of the world’s leading commercial hubs.

When the People’s Republic of China was established in 1949, the country was predominantly agricultural and poor. It then placed greater emphasis on industrialisation. It adopted a planned economic model based on the Soviet Union’s approach.

The major turning point came nearly 30 years later. The market-oriented reforms launched under Deng Xiaoping in 1978, changes to the agricultural production system, the establishment of special economic zones, efforts to attract foreign investment and export-oriented industrialisation together transformed the course of China’s economy. The reforms that followed were built on the foundations of industrial capacity, state capability and infrastructure developed during Mao’s era. Today, China is the world’s second-largest economy.

The reality is that the industries and supply chains of many countries are heavily dependent on raw materials, intermediate goods, machinery and components from China. Without the necessary supplies from China, their production could come to a standstill. However, not all countries are equally dependent on China. Some countries mainly import consumer goods from China, while a large share of the intermediate goods and machinery needed for industrial production in other countries comes from China.

The extent to which China’s influence on global trade has grown over the past two decades can be seen by looking at the list of trading partners of different countries. China is now the largest trading partner of most countries in the world. In many cases, China has taken the place once occupied by the United States as the main trading partner.

Visual Capitalist presented this picture by analysing bilateral trade data for 2025. For this, it used data from the International Monetary Fund’s (IMF) Direction of Trade Statistics. The figures were compiled by comparing how much trade countries conduct with China and the United States. This helps show how far China’s influence has expanded in global trade and in which countries the United States still maintains a strong position.

The biggest turning point in China’s rise in global trade came in 2001, when China joined the World Trade Organization (WTO). It then rapidly industrialised, increased exports and became more deeply integrated into global supply chains. Through this process, the country became one of the world’s major manufacturing hubs. Chinese products spread to almost every corner of the world. China produces goods at relatively low prices. As a result, it has taken the lead in meeting the demand of the emerging middle class in developing countries.

The example of the iPhone makes this easy to understand. Due to large-scale production in China, skilled labour, a vast network of suppliers and advanced infrastructure, technology products such as the iPhone can be manufactured at relatively low costs. As a result, such products have not remained limited to the wealthy in developed countries but have also reached the hands of the middle class in developing countries such as Bangladesh.

The results are now evident. According to Visual Capitalist, in 2000, only 33 countries traded more with China than with the United States. A little over two decades later, that number had risen to 151.

Over the past two decades, China’s exports have not been the only thing to grow; its economic ties with the global economy have also deepened. For many countries, China is now not merely a country to buy from or sell to, but an important trading partner for their economies. In this way, China has gradually taken over the United States’ position on the map of global trade.

Cambodia is the most dependent on China for imports. A total of 46.8 per cent of the country’s goods imports come from China. In other words, if Cambodia imports $100 worth of goods from abroad, nearly $47 worth comes from China. Myanmar comes next, with 33.5 per cent of its total imports coming from China. In Peru, the figure is 28.7 per cent.

Outside Asia, countries significantly dependent on China include Australia, Brazil, Chile and Russia. China accounts for 25.5 per cent of Australia’s total goods imports, 24.9 per cent of Brazil’s and Chile’s imports, and 24.8 per cent of Russia’s imports. The figure is 23.3 per cent for Sri Lanka, 22.5 per cent for Japan and 21.5 per cent for South Africa.

On the other hand, despite its tensions with China, 13.8 per cent of the United States’ total goods imports come from China. For Canada, the figure is 11.6 per cent. Among Europe’s major economies, 12.3 per cent of Germany’s total imports, 12.2 per cent of the United Kingdom’s, 9.1 per cent of Italy’s and 8.8 per cent of France’s come from China.

China is not only one of the world’s largest exporters but also an important supplier for many countries. Some countries in particular in Asia, Africa and Latin America are highly dependent on China for imports. A large share of the raw materials, machinery, electronic products and consumer goods used in these countries’ manufacturing industries comes from China. As a result, any major disruption to China’s production or exports could have a relatively greater impact on the supply chains and local industries of these countries.

The reality is that global manufacturing systems are now spread across different countries. The equipment required to produce a product is not all manufactured in a single country. China’s dominance in this supply chain has now become so deep that in many cases it is impossible to avoid it.

In 2020, China imposed strict lockdowns to contain Covid-19. The impact quickly spread across the world. Even the most essential item needed to fight the coronavirus—masks—was imported by the United States from China. At the same time, the supply of components, raw materials and intermediate goods that China supplied to various countries around the world was disrupted. This showed just how dependent global supply chains are on China.

China is Bangladesh’s largest trading partner. The dominance of Chinese products in the Bangladeshi market, which has continued since the 2008–09 fiscal year, remains intact. In other words, China is the first choice of Bangladeshi businesses for importing goods.

In the 2024–25 fiscal year, Bangladesh imported goods worth $20.61 billion from China. In that year, Bangladesh imported a total of $67.44 billion worth of goods. This means that nearly 30.6 per cent of Bangladesh’s total goods imports came from China in the 2024–25 fiscal year. In the 2021–22 fiscal year, the figure was 27 per cent. In other words, Bangladesh’s dependence on China is increasing.

Bangladesh imports industrial machinery, chemicals, raw materials for the textile sector, electronic products and furniture from China. Most of the raw materials used to manufacture garments also come from China. Bangladesh also exports products made using these materials.

China and the United States are engaged in a trade war. This is where the biggest paradox in their relationship can be seen. The more politically distant the two countries become, the harder it has been to break their mutual dependence in certain areas of industry and supply chains. This interdependence is visible in smartphones, batteries, semiconductors, aircraft technology and energy trade.

An analysis of 2024 trade data shows that the United States remains heavily dependent on China for a range of products, from smartphones and phone equipment to toys and video game consoles. China, on the other hand, depends on the United States for aircraft technology, semiconductors and energy exports. This picture emerges from the latest data in UN Comtrade, the United Nations’ trade database.

China is now trying to transform itself from the world’s factory into a high-tech hub. Its progress in the electric vehicle sector over the past few years has been nothing short of remarkable. It is no longer Tesla but China’s BYD that is the leading name in the electric vehicle industry. BYD factories are being established in different parts of the world. China also controls the lion’s share of the rare earths needed to manufacture everything from semiconductors to various electronic products.

At present, China accounts for 70 per cent of rare mineral mining, 90 per cent of processing and 93 per cent of magnet production. By keeping prices relatively low, it has discouraged new competitors from entering the market. As a result, it has become difficult for Western countries to build alternative supply chains.

An analysis of 2024 trade data shows that the United States remains heavily dependent on China for a range of products, from smartphones and phone equipment to toys and video game consoles. China, on the other hand, depends on the United States for aircraft technology, semiconductors and energy exports. This picture emerges from the latest data in UN Comtrade, the United Nations’ trade database.

China is now trying to transform itself from the world’s factory into a high-tech hub. Its progress in the electric vehicle sector over the past few years has been nothing short of remarkable. It is no longer Tesla but China’s BYD that is the leading name in the electric vehicle industry. BYD factories are being established in different parts of the world. China also controls the lion’s share of the rare earths needed to manufacture everything from semiconductors to various electronic products.

At present, China accounts for 70 per cent of rare mineral mining, 90 per cent of processing and 93 per cent of magnet production. By keeping prices relatively low, it has discouraged new competitors from entering the market. As a result, it has become difficult for Western countries to build alternative supply chains.