China’s foreign trade, under the support of government policies, has cultivated new competitive advantages, and will overcome difficulties and turn in a good performance under the country’s strong economic resilience and new comparative advantages, experts said.
China’s foreign trade is facing an adverse situation. Inadequate supply of high-end products for the overseas market and the pressure of RMB appreciation put obstacles in the country’s foreign trade, said Zhang Huanbo from the China Center for International Economic Exchanges.
However, since this year, the decreased rate of China’s export has been narrowed, and China’s share in the global market is increasing. There are also some highlights in China’s foreign trade structure, such as slight decreases in general trade and fast growth in new foreign trade business models, said Long Guoqiang from the State Council Development Research Center. All this shows that China’s foreign trade structure is optimizing, Long added.
To stabilize foreign trade, China has issued comprehensive measures. The efforts include improving the export tax rebate system, regulating fees, facilitating RMB settlement in cross-border trade and investment, developing new foreign trade businesses, and promoting processing trade upgrades and moving west within the country.
Economic transformation also needs shifts in foreign trade. “We should establish an open economic system, encouraging enterprises to expand its production and marketing network overseas, with efforts to integrate into the world economy,” said Zhang Huanbo.
While stabilizing foreign trade, it is also important to promote economic transformation and rebuild comparative advantages, Long Guoqiang said. On the back of solid reform, it is predicted that China’s foreign trade will achieve stable growth, said Sang Baichuan, a professor at the University of International Business and Economics. And foreign trade will hit a surplus of 2 to 3 percent per year in the long run, Zhang Huanbo said.
The performance of China’s economic upgrades also released a positive signal of growth in foreign trade. China joined the world’s 25 most-innovative economies as the first middle-income economy, according to the Global Innovation Index 2016 published by Cornell University and other institutions. And China’s tech industry, especially mobile business, has surpassed the US, according to The New York Times.