Support policies defined to increase the vitality of the company
China’s foreign trade is expected to grow steadily in the coming months, boosted by the government’s supportive policies and the resilience of its industrial chain in the electromechanical industry, experts said on Wednesday.
In August, the value of China’s foreign trade in goods rose 8.6% year-on-year to 3.71 trillion yuan (US$531.6 billion), and the figure reached 27.3 trillion yuan in the US. the first eight months of this year – an increase of 10.1% compared to the previous year, according to data from the Main Customs Administration.
Although the growth rate in August was slower compared to the annual growth of 16.6% in July, due to last year’s high base and weakening global demand, experts say that China’s foreign trade will be able to maintain double-digit growth in the second half of the year, and should be one of the main drivers of economic growth this year.
“Many global companies are likely to return to China in the fourth quarter as infections with new sub-variants of Omicron have increased in Vietnam, disrupting their supply chain for foreign customers, especially in labor-intensive manufacturing,” Bai said. Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation in Beijing.
“Bilateral and multilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) will be practical tools for China to ensure its foreign trade growth,” Bai added.
Rising costs of manufacturing materials and energy prices in Europe and South Korea, as well as falling international transportation costs, will ensure continued global demand for Chinese products in the coming months, said Su Qingyi, a researcher at the Chinese Academy of Social Sciences.
China’s trade with member states of the Association of Southeast Asian Nations, its largest trading partner, rose 14 percent year-on-year to 4.09 trillion yuan between January and August. In addition, its trade with the European Union increased by 9.5% to 3.75 trillion yuan.
The total value of trade between China and the United States rose 10.1% year-on-year to 3.35 trillion yuan. China’s foreign trade with the other 14 RCEP members rose 7.5% from January to August, according to customs data.
The country’s supportive policies, such as speeding up multi-country free trade agreement negotiations and encouraging new trade formats, including cross-border e-commerce, will further boost exports, said Ministry of Commerce spokeswoman Shu Jueting.
Exports of electromechanical products such as computers, vehicles and smartphones rose 9.8% year-on-year to 8.75 trillion yuan between January and August, accounting for 56.5% of the country’s total export value.
Zhou Maohua, an analyst at China Everbright Bank, said the double-digit growth in foreign trade in the first eight months of this year reflected the prosperity of China’s manufacturing sector and its supply chain.
“China’s export structure has improved significantly, with exports of electromechanical products increasing proportionately in foreign trade,” Zhou said.
He said the growth in exports of China’s labor-intensive products also showed that the country’s competitiveness in the sector remained profitable despite high inflation in many foreign markets.
China’s exports of labor-intensive products rose 14.1% year-on-year to 2.81 trillion yuan in the first eight months, according to Customs data.
China’s strong foreign trade performance will help boost the country’s economic growth and stabilize its labor market in the second half of 2022, said Feng Yaoxiang, director of trade and investment promotion at the China Trade Promotion Council. International in Beijing.