This year, China’s foreign trade got off to a steady start. However, due to multiple external factors, there is increasing pressure on stabilizing growth. Since May this year, foreign traders have gradually resumed production and business, and industrial and supply chains have become more stable and smooth. Efforts to stabilize growth begin to pay off. Under the joint efforts of local governments, relevant ministries and foreign traders, the growth rate of import and export rose to 9.6% in May, showing that China’s foreign trade is on a trajectory of recovery and growth.

China’s foreign trade is still facing some destabilizing factors and uncertainties that cannot be addressed in the near future. The world economic recovery remains fragile, leading to a sluggish external demand. In its latest report, the World Bank slashed the global growth forecast to 2.9% for 2022, far lower than the 4.1% predicted in January. Foreign trade businesses in China are still faced with such challenges as cost, supply chain and logistics.

Despite some difficulties, there are still many enabling conditions for achieving this year’s goal of stabilizing and improving the quality of foreign trade. First, local authorities and government departments are resolutely implementing policies and plans of the CPC Central Committee and the central government to meet the requirements on effectively coordinating COVID-19 response and economic and social development. Production and life are getting back on track with logistical impediments being removed gradually, which will help further tap the strengths of China’s foreign trade. Second, supporting policies have been adopted intensively. The State Council has introduced a package of policies and measures to stabilize the economy and published opinions on stabilizing and improving the quality of foreign trade. It has made further plans to address difficulties facing enterprises in reopening and operating at full capacity, speed up export tax refunding and make ports more efficient. Local authorities and related government departments are implementing these policies and introducing supporting measures. The overlapping of these policies will give a strong boost to foreign trade growth. Third, China has an increasing number of free trade agreement (FTA) partners. The role of FTAs in tax reduction and trade facilitation will also promote foreign trade development. Overall, we are confident of keeping major foreign trade indicators within an appropriate range to contribute to stable macroeconomic fundamentals. Thank you.