Foreign trade, export-oriented processing in particular, remains a crucial cornerstone of China's economy, despite all the clamor about boosting domestic consumption as the main driver of growth.
With the novel coronavirus still disrupting normal life and production at home, stimulating consumption remains difficult.
It is important for the foreign trade sector to be supported. The new round of support for the foreign trade sector, announced on Tuesday, is an opportune move in the right direction. If properly implemented, the measures will have a huge impact on the well-being of many foreign trade businesses and their employees, and the economy as a whole.
For all the negative variables affecting the import and export businesses over the past few years, most noticeably Pandemic-related disruptions at home and abroad, geopolitical shocks to global industry and supply chains, and inflation-induced withering demand, Chinese foreign trade has appeared to be a rare bright spot in the generally bleak global economic landscape. The decent 10.1 percent growth in imports and exports the country witnessed in the first eight months of 2022 has strengthened belief in the Chinese economy's strong resilience and vitality Optimism, as there are several signs that there may be even tougher times ahead for the world economy going forward, which will inevitably dampen China's foreign trade. International trade monitors have issued clear warnings about a decline in global demand for Chinese goods. The cost of shipping goods from China has dropped to the lowest level in more than two years, as a result of shrinking demand.
While the United States' efforts to remove China from global supply chains remain largely negligible, the confluence of various headwinds that affect developed and developing economies alike will not leave China unaffected by the ongoing conflict between Russia and Ukraine.
The Ministry of Commerce is attempting to spur foreign trade by reducing the obstacles to foreign trade caused by the epidemic restrictions, facilitating online transactions and improving customs and ports services.
While bureaucratic red tape has been a longstanding obstacle for foreign trade businesses, the chokepoints it has cultivated over decades have become a hindrance in such a difficult time.
The removal of the obstacles that local authorities have erected in the name of epidemic prevention and control is a factor in whether or not they can deliver the promised dividends.