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Resilience to salvage exports

chinadaily.com.cn | Updated: April 8, 2022

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Taicang Port in Jiangsu province. JI HAIXIN/FOR CHINA DAILY

Chinese authorities are expected to bolster foreign trade enterprises through a variety of measures as the nation's export growth is under pressure due to the COVID-19 resurgence, which has disrupted production and logistics in some key regions, experts and business leaders said on Thursday.

Although first-quarter export data are yet to be finalized, they took stock of the performance based on the figures available in the public domain. They estimate exports may have been somewhat dampened by fresh COVID-19 cases that are suspected to have curbed economic and export activities in the Yangtze River Delta and Pearl River Delta areas, China's two most important manufacturing and port hubs.

However, the strong resilience of the Chinese economy and the continuous improvement in the quality of China's foreign trade will provide a solid foundation for the enterprises to enhance profitability and pursue growth, experts said.

Huo Jianguo, vice-chairman of the Beijing-based China Society for World Trade Organization Studies, estimated the annual growth rate of China's foreign trade in March is highly likely to slow down, compared with the double-digit growth registered for the January-February period.

"COVID-19 control measures may affect some enterprises' output, and logistics disruptions are also likely to obstruct timely delivery of raw materials and finished goods," Huo said.

Those with a low inventory of raw materials due to related price surges will struggle to keep production and operations normal, he said.

Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, said the Chinese government could adopt more accurate contagion control measures to minimize impact on economic activity, while further improving government functions and enhancing the business environment to boost market confidence.

The government could also inject more vitality into enterprises by letting the market forces play a bigger role, he said.

Although exports in March seemed to have experienced increased downward pressure, analysts stressed that China's overall export performance will likely remain stable this year.

Huo from the China Society for World Trade Organization Studies said the drivers of China's GDP growth and the competitiveness of Chinese products remain strong.

Besides, supportive government policy measures, including those easing enterprise burdens and encouraging innovation, will significantly facilitate growth in foreign trade, he said, predicting foreign trade will likely register an annual growth rate of 10 percent during the first half of the year, unless exports drop drastically to end with a year-on-year dip in March. Yet such a plunge may not have taken place, he said.

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