The Opinions on Promoting the Stable Scale and Optimal Structure of Foreign Trade issued by the General Office of the State Council not long ago pointed out that foreign trade is an important part of the national economy, and promoting the stable scale and optimal structure of foreign trade plays an important supporting role in stabilizing growth, employment and high-quality development, and put forward 18 specific measures to promote the stable scale and optimal structure of foreign trade.
Since the reform and opening-up, China has continued to open to the outside world. At present, it has become the main trading partner of more than 140 countries and regions, ranking first in the world in terms of the total volume of goods trade, leading the world in attracting foreign investment and foreign investment, forming a wider, broader and deeper opening-up pattern, which has played a positive role in improving the quality of national economic development and stabilizing global economic growth.
After the COVID-19 outbreak, China gave full play to its own advantages, made great efforts to promote the stability of the global industrial chain and supply chain, and increased the export of epidemic prevention materials, which made positive contributions to the global epidemic prevention and control and economic growth, and foreign trade also showed strong resilience. Since mid-2022, due to the sluggish external demand and other factors, China’s foreign trade once faced greater downward pressure under the global foreign trade downturn. As China’s economy and society fully resume normal operation and its supply capacity is enhanced, China’s foreign trade has gradually improved. The dollar-denominated import and export amount increased year-on-year in a single month, and after four consecutive months of negative growth in October 2022, it began to achieve positive growth in February 2023.
In the long run, China’s foreign trade has great potential. China’s foreign trade activities not only have strong strength, but also have strong flexibility, which can be adjusted in time according to the international trade situation and changes in the needs of trading partners, and quickly meet the large needs of trading partners. At present, China’s economic growth is better than expected, and the market demand is gradually recovering, but the endogenous power of the domestic economy is still not strong and the demand is still insufficient. While striving to expand domestic demand, it is also necessary to tap the potential of external demand and strive to promote a stable scale and excellent structure of foreign trade.
On the one hand, stabilize the scale of foreign trade. The first is to stabilize the foreign trade policy, fully consider China’s reality in accordance with international rules, constantly improve various preferential policies to support foreign trade development, and stabilize the expectations of all relevant subjects; The second is to stabilize the foreign trade market. While exploring the markets of developing countries, countries along the "Belt and Road" and ASEAN, we will try our best to stabilize exports to developed economies. Increase foreign trade orders through traditional channels such as the Canton Fair, as well as local exploration and promotion of trade activities; Thirdly, stabilize foreign trade entities, provide support in recruitment and financing around small and micro enterprises, export-oriented enterprises and other business entities, and reduce the risks of foreign trade enterprises by taking advantage of export credit insurance and exchange rate risk management of financial institutions.
On the other hand, optimize the foreign trade structure. We should optimize the product structure, continue to improve the development of knowledge-intensive, technology-intensive and capital-intensive service trade, and promote the rapid growth of high value-added service trade. In terms of trade in goods, while increasing imports of raw materials and primary products, we will increase the scale and proportion of exports of manufactured goods. We should also optimize the regional structure, focus on the requirements of coordinated regional development, give full play to the role of the main force of trade in the eastern coastal areas, improve the quality of trade, and explore ways to increase the proportion of trade in the central and western regions and the northeast region. In addition, it is necessary to optimize the trade mode, support the upgrading and development of processing trade while strengthening general trade, and continuously improve the level of trade digitalization.
As an economic power, to promote high-quality development, China not only needs to rely on the advantages of domestic super-large-scale market to enhance the endogenous power and reliability of domestic large-scale circulation, but also needs to promote high-level opening up and improve the quality and level of international circulation. For the current foreign trade situation, we should not only look at short-term fluctuations, but also look at long-term trends; It depends on the total growth and structural adjustment; We should look at it vertically from the time axis and horizontally from the international comparison; It depends on changes in exports and changes in imports. Through multi-faceted and multi-angle observation, objectively evaluate and pay full attention to the important role of foreign trade in China’s economic development, actively promote the stable scale and excellent structure of foreign trade, and continuously realize the high-quality development of foreign trade. (Author: Lou Feipeng Source: Economic Daily)