China is set to implement a comprehensive array of policy measures aimed at fortifying its foreign trade growth in the year 2023. These measures encompass enhancing trade cooperation within the new energy vehicle sector and elevating the development of processing trade.
These announcements were made by government officials during the 134th China Import and Export Fair, more commonly known as the Canton Fair, as they addressed concerns regarding the global economic recovery slowdown and declining demand for goods.
Facilitating export of used cars and overseas warehouses support
Guo Tingting, Vice-Minister of Commerce, articulated the government’s intentions to counteract the challenges posed by the global economic landscape. In response to the economic slowdown and decreased demand for goods, China plans to introduce novel strategies. These include streamlining the export process for used cars and offering support to domestic companies in the establishment of warehouses in overseas markets.
The Canton Fair: A Hub for foreign trade
The Canton Fair, boasting a colossal total exhibition area of 1.55 million square meters, is scheduled to be held in Guangzhou, Guangdong province, from October 15 to November 4. This illustrious event serves as an arena where China demonstrates its commitment to international trade.
A resolute stance on multilateral trade
Emphasizing the pivotal role of trade liberalization and facilitation, Guo reaffirmed China’s dedication to upholding the multilateral trading system. The World Trade Organization remains at its core, underscoring China’s unwavering support for global economic cooperation.
“China remains dedicated to maintaining a high level of openness to the global market and aims to expedite the development of a high-standard network of free trade zones,” she stated.
President Xi Jinping’s idea: Reform of the WTO
President Xi Jinping has articulated the need for active participation in the reform of the World Trade Organization. He is keen on enhancing China’s capacity to engage in high-level international trade, as highlighted during a recent Political Bureau of the CPC Central Committee group study session.
Green transformation and innovation
China is in the midst of a profound transformation, with traditional export sectors giving way to technologically advanced and environmentally sustainable products. This shift is indicative of China’s journey towards a new era of growth, driven by innovation and sustainability.
Sun Xiao, Secretary-General of the Beijing-based China Chamber of International Commerce, elaborated on this transition.
“China is at the forefront of a green transformation, where traditional export sectors like clothing, household appliances, and furniture are being replaced by cutting-edge, eco-friendly products.”
Robust export performance
Notably, China has exhibited robust export growth in mechanical and electrical products, including data processing devices, cellphones, and automobiles. From January to August, these exports increased by 3.6 percent year-on-year, reaching 8.97 trillion yuan ($1.23 trillion). This accounted for a substantial 58 percent of the country’s total exports. Particularly noteworthy was the remarkable surge in automobile exports, which recorded a year-on-year growth of 104.4 percent, totaling 442.7 billion yuan.
Success stories in foreign trade
Many Chinese companies are already reaping the benefits of this export-oriented strategy. Jiangsu General Science Technology Co, a tire manufacturer based in Wuxi, Jiangsu province, recently exported $164,700 worth of tires to Malaysia, Thailand, and Pakistan. This success can be attributed in part to the multiple free trade agreements between China and countries participating in the Belt and Road Initiative, which grant favorable tariff preferences.
Zhang Gaorong, the company’s Executive Vice-President, further emphasized the advantages of these agreements.
“Moreover, the rubber imported from these signatory countries for tire manufacturing in China can also leverage these tariff preferences, further bolstering our competitive edge in the global market.”
Recap
China’s commitment to sustaining foreign trade growth remains unwavering in the face of global economic challenges. With strategic policies in place to support key industries and promote innovation, China is poised to continue its role as a pivotal player in the global trade arena.