SCIO briefing on China's import/export performance in 2019
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E-mail China.org.cn, January 17, 2020
Zou Zhiwu:
Third, policies created to ensure stability in foreign trade have produced continuous effect. Since 2018, China has introduced a host of policies to ensure stability in foreign trade and foreign investment, and taken strong measures to cut taxes and fees, effectively reducing the corporate burden. Specifically, we raised the export rebate rates for some products in two batches, lowered import tariffs for consumer goods and accorded zero tariff treatment to some imported medicines. These policies and measures have produced obvious effects. For example, the export value of the products enjoy higher rebate rates grew up by 7.7%, and the imports of consumer goods and medical supplies increased by 19% and 25.8% respectively.
Meanwhile, China has deepened reforms to streamline administration, delegate powers and improve regulation and services, in order to energize market entities, create a more business-friendly environment at the ports, and facilitate cross-border trade. According to a report released by the World Bank, China's ranking on "trading across borders" index under the "doing business" heading climbed nine places to 56 in 2019, after jumping 32 positions in 2018.
Since there is no clear customs clearance efficiency between European Union (EU) countries, the customs clearance time among the 28 members is considered as "zero". So, if all the E.U. countries are counted as a single economy, China will achieve a further improvement in its ranking.
As to the foreign trade situation in 2020, I think global economic growth continues to slow, and the world economy is still in a period of deep adjustment following the 2008 financial crisis. Amid growing uncertainties, risks and challenges across the world, China continues to face a complex external environment for developing foreign trade. However, the country is continuing its efforts to deepen supply-side structural reform, and implement policies to ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment and expectations. This means continuous improvement in the business environment, ensuring the vitality of market players and the structure of foreign trade. The trend of accelerated change of growth drivers will continue for a long time. China's foreign trade is expected to maintain stable growth in 2020, with the quality of development further enhanced. Thank you.
Guangming Daily:
We noted that there was a notable rise in China's imports and exports in December, recording double-digit growth year-on-year. What are the specific drivers behind the growth? Thank you.
Zou Zhiwu:
Thank you for the question. I would like to invite Mr. Huang to answer it.
Huang Guohua:
Thank you for the question. China's foreign trade did indeed register a double-digit growth in December, with the monthly value of both imports and exports reaching a new high. The following are the main reasons.
First, the purchasing managers' index (PMI) for China's manufacturing sector rose for two consecutive months – November and December, - fueling imports of some raw materials and energy products. For example, the imports of iron sand, copper grit and refined oil increased by 17.2%, 31.9% and 10% respectively, boosting overall growth.
Second, as commodity prices rose in the international market, the average import price of some major commodities also went up. For example, the average import price of iron sand increased by 18% in December, and its import volume grew by 17.2%, thus contributing 1.5 percentage points of total import growth.
Third, China-US trade negotiations sent out encouraging signals, bolstering the confidence of companies. In December, the exports of toys, plastic products and furniture increased by 26.1%, 22.7% and 14.2% respectively. China's Central Administration of Customs conducts an online questionnaire survey of 3,000 foreign trade companies each month. Statistics of November and December showed that the number of companies optimistic about the export situation in the next two to three months increased, and the rise in December was the highest since the second half of 2018.
In addition, China's imports and exports decreased by 1.4% in Dec., 2018. Based on the weak performance, the foreign trade actually achieved a resumption of year-on-year growth in Dec., 2019.
Thank you.
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