China’s economic soft power in the age of connectivity
Over the past two decades, China has evolved from an economy largely driven by mass production and industrial exports into a more complex actor in the global economy. It is no longer defined solely by low prices and high export volumes; rather, it exerts influence on international economic dynamics through a combination of industrial capacity, deeply integrated supply chains, emerging technologies, and an extensive network of overseas investment.
According to World Trade Organization data, China remains among the world’s largest merchandise exporters, with the value of its goods exports reaching approximately $3.77 trillion in 2025. This figure suggests that China’s weight in global trade has not only been maintained but has deepened in several sectors.
Yet China’s commercial power cannot be reduced merely to export figures. Beijing’s principal advantage lies in its integration across the value chain. China is not simply an exporter of finished products; it also plays a decisive role in the supply of raw materials, intermediate components, assembly, logistics, and even industrial standard-setting. This characteristic has left many global industries—from electronics and machinery to renewable-energy technologies—still dependent on China’s production networks. At a time when the world faces geopolitical shocks, tariffs, and “de-risking” policies, China has sought to enhance its trade resilience by diversifying its markets and strengthening domestic demand.
In the sphere of technology and emerging industries, China is no longer merely an exporter of garments and consumer goods. It is consolidating its position in batteries, electric vehicles, solar panels, telecommunications equipment, and industrial artificial intelligence. The International Energy Agency indicates that China stands at the center of growing demand for and production of electric-vehicle batteries, making this industry one of the country’s new instruments of economic influence. This trend has created competitive advantages and new avenues of influence for Chinese companies, particularly in the markets of Asia, Africa, and Latin America.
Meanwhile, China’s outward investment has also become an important tool for expanding its economic reach. In recent years, Chinese companies have moved beyond an exclusive focus on exporting goods and toward establishing factories, forming industrial partnerships, acquiring assets, and developing distribution networks abroad. This shift brings China’s image closer to that of a “global manufacturer and investor” rather than merely a major trader. At the same time, this trajectory is accompanied by challenges, including security sensitivities, technological restrictions, and intense competition in advanced markets.
In conclusion, China’s commercial power appears set to remain highly influential, though not in a simple or linear manner. The country’s path is shifting from the accumulation of volume toward improving quality, controlling supply chains, and gaining prominence in strategic industries. If China can strike a balance between export growth, technological innovation, and the management of trade tensions, it will remain one of the principal pillars of the global economy—a pillar that exports not only goods, but also a new model of economic power.
Mahdi Zolfaghari is PhD, Associate Professor, Department of Asian Studies, Allameh Tabataba’i University