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China rolls out multi-pronged measures to promote stable growth of foreign trade

2022-02-18 08:32:50 Belt and Road Portal

A series of preferential policies to stabilize foreign trade have been introduced successively since the beginning of this year.

Shandong Province took the action for stability and better quality of foreign trade. Guangdong Province proposed ten major programs for high-quality development of foreign trade in 2022.

-- A stable start

Turning pressure into motivation and turning challenges into opportunities, China's foreign trade can still be expected to withstand the downward pressure and achieve a stable beginning driven by international trade demand and domestic policy toolkits, according to an industry insider.

With respect to the policy effect, an array of favorable policies to stabilize foreign trade effectively supported some of the foreign trade indicators. According to the National Bureau of Statistics, the new export order index for China's manufacturing sector in January reported 48.4 percent, up 0.3 percentage points from the previous month and higher than the average level registered in the second half of 2021.

From the perspective of the economic fundamentals, good omens of economic recovery and credit stability have appeared. The purchasing managers' index (PMI) for China's manufacturing sector in January stood at 50.1 percent in January, staying in the expansion zone for three consecutive months; the renminbi loans increased by 3.98 trillion yuan and the incremental social financing registered 6.17 trillion yuan, both hitting record highs. Therefore, China's economy is expected to maintain a steady recovery.

China's import and export demand will be supported by the resuming resurrection of global manufacturing industry. The latest data from China Federation of Logistics & Purchasing show that the global PMI in January remained above 50 percent and stood at 54.7 percent.

Zhou Maohua, a macro-researcher of the financial market department of China Everbright Bank believed that due to the strong overseas demand plus better foreign structure and quality, China's import and export in the first quarter of this year will maintain the steady momentum.

The latest survey conducted by the Development Research Center of the State Council showed that China's foreign trade enterprises are able to maintain stable growth in capacity utilization, employment, capital turnover and order delivery in the rest of this year.