China confident foreign trade to grow in H2 2022 despite weak demand

Confident about the role of foreign trade expansion in shoring up the country's economic recovery, he attributed the drop in export orders partly to the economic slowdown in some major economies, citing a sluggish economic outlook and a slower growth in global trade in goods.

Factors like rising inflation in some major economies and the high inventory levels of foreign importers also resulted in the decline in orders, which has affected not only Chinese firms but also exporters in Southeast Asia and other countries, Wang was quoted as saying by an official news agency.

Earlier data showed China's foreign trade sustained growth momentum in the first eight months of the year, jumping by 10.1 per cent year on year (YoY) to 27.3 trillion yuan ($3.95 trillion).

In August alone, however, the country's foreign trade volume registered an 8.6 per cent YoY increase, down 7.9 percentage points from that in July. Some export companies have seen a decline in the number of orders recently.

To help companies navigate difficulties, China's commerce ministry recently issued a circular on stabilising foreign trade, which Wang said will strengthen the country’s capability of foreign trade companies to deliver contracts and further expand their presence in the global market.

Efforts will also be made to ensure special funds for international economic cooperation and foreign trade are used fully and at an accelerated pace, and to enhance services for companies to participate in overseas exhibitions and conduct business negotiations.

To stimulate innovation vitality, China will pilot market procurement trade on a new list of markets, develop a new group of innovation demonstration zones for the import trade and establish a number of new integrated pilot zones for cross-border e-commerce.

Measures have been put in place to raise the efficiency of transportation of goods between inland regions and coastal ports, and to improve domestic land transport to accelerate transshipments as well as the inbound and outbound transport of goods, Wang added citing the circular.

Fibre2Fashion News Desk (DS)