Foreign Trade Order Outflows Are Manageable, Impact Is Limited, China Ministry Says
Miao Qi
DATE:  Jun 08 2022
/ SOURCE:  Yicai
Foreign Trade Order Outflows Are Manageable, Impact Is Limited, China Ministry Says Foreign Trade Order Outflows Are Manageable, Impact Is Limited, China Ministry Says

(Yicai Global) June 8 -- The outflow of some foreign trade orders from China to neighboring countries is manageable and the impact is limited, according to the commerce ministry.

Some orders that returned to China last year due to the Covid-19 pandemic are flowing out again this year amid a gradual recovery in production in neighboring countries, ministry officials told a press conference in Beijing today.

With the continuous upgrading of Chinese industry, some firms have volunteered to transfer part of their manufacturing processes abroad, which is a normal event in international trade and investment, said Li Xingqian, director of the ministry’s foreign trade department.

That has led to the further consolidation of China’s position in the global industrial supply chain, Li added.

China has been the world’s largest exporter for 13 consecutive years, according to customs data. From January to April, the country’s international trade reached CNY12.58 trillion (USD1.89 trillion), up 7.9 percent from a year earlier, or 10.1 percent in US dollar terms, slowing from the January to March period.

Exports of high-tech and high value-added products have grown relatively quickly, though overall trade growth has slowed, Vice Minister Wang Shouwen pointed out. In the first four months this year, for instance, electric vehicle exports surged 138 percent, while that of construction machinery jumped 35 percent.

Nevertheless, foreign trade companies do face uncertainty, Wang said. Global inflationary pressure is relatively high, and rising raw material prices have brought greater cost pressure to bear these firms. And the pandemic has magnified supply chain uncertainty, he added.

In response to these difficulties, Wang said the government will help enterprises reduce operating costs through tax and other policies, while taking steps to improve the efficiency of various ports and customs to ensure smooth logistics.

He noted that traditional trade fairs, including the China Import and Export Fair, or Canton Fair, will be held in the second half of the year. They will aim to improve online trading platforms, providing exporters with more opportunities to reach overseas customers and help them secure more orders.

In addition, the government will continue to encourage higher value-added products like pharmaceuticals and autos to develop international markets, Wang said. China will support the growth of new foreign trade formats, including cross-border e-commerce and overseas warehouses, to cultivate a new growth point for foreign trade.

Editors: Tang Shihua, Peter Thomas

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Keywords:   Foreign Trade,COVID-19,Industry Analysis,Ministry of Commerce