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Guideline to boost structure and development of foreign trade

Updated: May 12,2015 5:28 PM

China will adjust its trade structure, transform the development of foreign trade and move up the global value chain, according to a guideline issued by the State Council on May 12.

To ensure this goal, which will enhance its trade prowess, it will innovate business and trade modes, as well as opening up more areas, the guideline said.

The current scale-driven and quick turnover foreign trade approach will be transformed into trade that is quality-driven and profit-oriented, the statement said.

The transformation will have five key aspects: exports will cover more areas including services and technology; instead of price advantage, the focus will be on competitive brand and quality; foreign trade growth will be mainly driven by innovation; laws and regulations will play a bigger role in creating an international business environment; and China will seek to participate in the formulation of rules governing global trade and the world economy.

The guideline also laid out specific tasks to meet the goal.

First, to vigorously boost the restructuring of foreign trade.

* Efforts will be doubled to make sure emerging markets, such as Latin America and Africa, occupy a bigger share of China’s foreign trade, while further developing traditional export markets in the United States, Europe and Japan. Imports of advanced technology and equipment will be expanded and exports of high-quality and high-grade products with comparative advantages will be boosted.

* Priority will be given to high-end industries and high-value added chains in eastern China to improve quality and profits, while support will be offered to the central and western regions to maintain the industries transferred from the east.

* Facilitate the establishment of a group of large enterprises that are capable of global operations. The development of innovative, entrepreneurial and labor-intensive businesses of micro, small and medium sizes will be encouraged. The country will also support the development of export-oriented private enterprises that encourage innovation.

*The competitive edge in exports of equipment such as for electricity and rail transportation will be boosted, as well as the exports of complete sets of major equipment. Global competitiveness in newly emerging industries such as energy conservation and new energy will be further improved.

* Service sectors, such as finance and logistics, will be further opened up, and the proportion of services in foreign trade will be higher.

Second, to improve the international competitiveness of foreign trade.

* Modern technology will be used to transform traditional sectors and improve the quality of labor-intensive products. Transnational corporations and overseas scientific research institutions will be encouraged to set up research organizations in China.

* Various means will be adopted to promote Chinese brands overseas.

* Enterprises will be encouraged to operate and conduct quality tests in accordance with international standards.

* Businesses will be encouraged to use after-sales service as an important approach to explore global markets, and improve service quality.

* The development of cross-border e-commerce will be greatly boosted.

* There will be greater promotion of free trade pilot zone across the nation while construction of the newly-established free trade zones in Guangdong province, Tianjin municipality and Fujian province will be advanced.

Third, overall cooperation with countries along the Silk Road Economic Belt and the 21st Century Maritime Silk Road will be improved.

* Exports of labor-intensive products to these countries will be continued amid their infrastructure construction, to drive the exports of complete sets of major equipment, technologies and services.

* Exports of industries and capacities over which China has advantages will be encouraged to “go global” for greater cooperation. Enterprises in highly technological sectors such as nuclear power and rail transportation are encouraged to make investment in these countries.

* Cooperation in electric power transmission and optical cable communication will be expanded, to speed up the establishment of international trading routes that connect Central Asia, Russia, Mongolia, the Eurasia land bridge, Southeast Asia and South Asia.

Fourth, realizing international cooperation that brings benefits to all parties.

* A key task will be the early signing and implementation of free trade treaties with South Korea and Australia and to promote negotiations between China and the Association of Southeast Asian Nations (ASEAN) to upgrade their free trade deal. China will also work to carry forward free-trade negotiations under the framework of Regional Comprehensive Economic Partnership, which includes China, 10 ASEAN nations, Japan, South Korea, India, Australia and New Zealand, and free trade deals with Israel and Sri Lanka. China will also advance the construction of the free trade area in the Asia-Pacific region and launch free trade deal talks with other trading partners.