Experts from the Ministry of Commerce: This year's foreign trade growth pressure, corporate competitiveness is losing

September 10, 2019

Abstract Wisdom ASDOCKS news agency April 23, Huo Jianguo, president of the Ministry of Commerce, told the Great Wisdom News Agency on Tuesday that the foreign trade data in the first quarter showed that the pressure of foreign trade growth this year was large, not entirely a cardinal issue. It is a structural issue that shows the existence of China’s export competitiveness...
Great wisdom ASDOCKS news agency April 23, Huo Jianguo, dean of the Ministry of Commerce, told the Great Wisdom News Agency on Tuesday that the foreign trade data in the first quarter showed that the pressure of foreign trade growth this year was large, not exactly the base problem, but Structural problems show that there are problems with China's export competitiveness.

According to customs statistics, in the first quarter of this year, China’s total import and export value fell by 3.7% year-on-year, exports fell by 1.6%, imports fell by 1.2%, and the situation of double import and export was very rare. "This year's pressure is relatively large. Last year, the false trade led to a relatively high base. Excluding the factors of Hong Kong and Taiwan, the growth was probably less than 4%, but it was still weaker than in previous years, indicating that structural changes are not entirely a cardinal problem." Huo Jianguo Today, I explained to the Great Wisdom News Agency in the "2014 Consumer Market Development Report" conference.

He pointed out that from the perspective of the external environment, the US, Europe, and Southeast Asia markets are recovering, but the export is not going up, which only shows that there are problems in the export competitiveness of Chinese enterprises. “Processing trade is declining and trade in the east is falling. This has become a hard injury and is not adjustable.” Huo Jianguo pointed out that Chinese companies have not paid attention to market development, but are busy dealing with various risks, such as exchange rate fluctuations. There are no fixed orders, export orders are not dare to sign.

More importantly, due to rising costs, manufacturing profits have fallen sharply, and manufacturing has experienced a trend of outflow to Southeast Asia, which is faster than the transfer to the Midwest. In this regard, Huo Jianguo believes that although the state encourages the central and western regions to undertake industrial transfer, it has not received good results because the domestic supporting policies are not in place.

Huo Jianguo believes that the stable foreign trade policy introduced by the Ministry of Commerce may focus on cultivating new competitive advantages, opening up markets and increasing product added value. For the e-commerce export tax rebate with high voices, Huo Jianguo said that the service outsourcing business is mainly realized through e-commerce, and how the cross-border settlement amount statistics and export tax rebates are still under study.

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