China confident it can achieve positive foreign trade growth

Despite slowing external demand, Vice Commerce Minister Wang Shouwen said on Tuesday that China could achieve positive foreign trade growth in the second half of 2022, despite growing pressure to stabilise its import and export flows.

Foreign trade, the last reliable pillar of the world's second largest economy as it struggles with COVID 19 outbreaks, weak consumption and a property crisis, is losing steam as demand wanes at home and abroad.

As the economic growth in Europe and the U.S. slowed and orders for Chinese trade firms declined, the August trade data shows that the weakening external demand remains the biggest uncertainty for China's foreign trade, Wang said at a press conference in Beijing.

In order to control the sector, the ministry has recently released measures, including supporting firms' order delivery and encouraging some regions to explore second-hand auto exports.

The ministry said that the online exhibition of the 132nd China Export and Import Fair, or Canton Fair, will be expanded from 10 days to five months.

The cabinet said last week that China will lower the port dues on cargo priced by the government by 20 per cent in the fourth quarter and vowed to keep normal operation of ports and freight depots.

With these policy supports and the sound foundation of China's foreign trade, we are confident that the sector will achieve positive growth in the second half of the year despite slowing external demand, Wang said.

Exports increased by 7.1 per cent from a year earlier in the month of July after a 18 per cent gain in July, marking the first slowdown since April, official data showed.

The slow down in trade is rippling through workshops across eastern and southern China's manufacturing hubs, in industries from machinery parts and textiles to high-tech home appliances, where businesses are scaling back while export orders dry up.