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Positive changes in China's foreign trade in the second quarter

July 07, 2022
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On the 29th, the China Council for the Promotion of International Trade released the "Investigation Report on China's Foreign Trade Situation in the Second Quarter of 2022". The survey report shows that with the efficient coordination of epidemic prevention and control and economic and social development, the effect of policies and measures to stabilize growth has gradually emerged, and my country's foreign trade operations have experienced positive changes in the second quarter.

On the same day, the China Council for the Promotion of International Trade held a regular press conference, and Feng Yaoxiang, the spokesperson of the China Council for the Promotion of International Trade and Minister of Trade and Investment Promotion Department, released an investigation report. He introduced that the China Council for the Promotion of International Trade (CCPIT) has recently distributed questionnaires to foreign trade enterprises across the country, and combined international and domestic comprehensive data to form research reports. The survey report shows that my country's foreign trade operation in the second quarter has the following characteristics:

First, the operation of foreign trade enterprises has improved. Among the companies that participated in the survey, 25.43% of the companies' trade volume increased month-on-month, and 19.98% of the companies' profits increased month-on-month. The export profits of high value-added industries such as special equipment manufacturing, automobiles, computer communications and other electronic equipment, and pharmaceutical manufacturing increased compared with the first quarter. The new orders of 22.65% of enterprises increased from the first quarter, and the order growth of 30.43% of enterprises was the same as that of the first quarter. At the same time, the proportion of new orders from countries and regions such as the Middle East, Japan, South Korea, and Africa increased, the market for new orders became more diverse, and the ability to resist risks in foreign trade was stronger.

Second, the main problems faced by foreign trade enterprises have been improved. 22.13% of enterprises indicated that the logistics cost decreased compared with the first quarter. 15.05% of enterprises believe that the cost of capital has decreased compared with the same period last year, an increase of 3.38 percentage points from the first quarter. 38.8% of companies said that the problem of currency erosion in profits was alleviated in the second quarter. Only 15.63% of the enterprises indicated that the problem of labor difficulties was prominent, a decrease of 3.87 percentage points from the first quarter. The main difficulties faced by enterprises are still concentrated in "one rise and one fall", that is, the rise in raw material costs and the year-on-year decline in new orders.

Third, the fundamental trend of foreign trade is improving. The foreign trade policy has been effective in relieving difficulties and solving problems. 55.97% of the enterprises believed that speeding up export tax rebates would help them the most in alleviating cash flow pressure, while 54.8% and 48.21% of the companies believed that speeding up tax cuts and fee reductions and relieving logistics pressure were more effective in solving the actual operational difficulties of foreign trade companies. At the same time, the level of awareness and utilization of the Regional Comprehensive Economic Partnership (RCEP) among foreign trade enterprises has increased significantly.
Fourth, foreign trade enterprises have raised their expectations for annual growth. 26.22% of enterprises expect the annual trade volume to increase, and 28.17% of enterprises believe that it is at least the same as last year. Among them, large enterprises are expected to be relatively stable, medium-sized enterprises are more optimistic about the foreign trade situation in the whole year, and the confidence of small and micro enterprises is gradually increasing.

"The research report shows that China's foreign trade industry has a solid foundation, and the fundamentals for the long-term improvement have not changed. The advantages of foreign trade development with strong resilience, sufficient potential, and large room for maneuver will be more prominent." Feng Yaoxiang said that in the next step, China Council for the Promotion of International Trade will promote high-quality promotion. Promote the implementation of free trade agreements such as RCEP, strengthen the issuance of certificates of origin, actively perform the responsibility of issuing ATA carnets, strengthen foreign-related commercial legal services, and take various measures to help maintain the stability and quality of foreign trade.
According to Feng Yaoxiang, in the first five months of this year, the total amount of certificate of origin visas in the national trade promotion system totaled 155.34 billion US dollars, a year-on-year increase of 23.95%. Japan ranked first in the national trade promotion system for 5 consecutive months in terms of RCEP certificate of origin visa amount, and the monthly visa amount accounted for more than 90%.

Source: Xinhua News Agency

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