Beijing (Reuters) – China’s Vice Commerce Minister, Wang Shouwen, said on Wednesday that China would increase the number of online trade exhibitions and improve the efficiency of port operations, among other steps, to alleviate pressure on its international trade.
In April, export growth in the world’s second-largest economy dropped to single digits, which was the lowest level in over two years. Imports, on the other hand, didn’t change at all, because strict COVID-19 restrictions froze manufacturing operations and lowered domestic demand.
Wang said at a news conference in Beijing that a drop in the efficiency of logistics, slow supply chains, and skyrocketing costs for raw materials have all put pressure on businesses that do business internationally.
“We must be aware of the difficulties surrounding international commerce while the global economy’s recovery remains shaky and demand growth continues sluggish,” said Wang, adding that growing global inflation would restrict consumer spending on foreign products.
In April and May, widespread and strong COVID-19 restrictions, including a complete shutdown of the economic centre of Shanghai, severely impacted Chinese companies and created huge supply chain disruptions.
Wang said that China will take certain steps to boost business, such as getting help from banks with currency, shipping costs, and tax refunds on exports.
Wang said that the transport ministry would assist in enhancing port operations and that additional online trade exhibitions would be organised to assist businesses in securing orders.
The plans are in line with the cabinet’s plan to increase trade with other countries by giving tax refunds on exports and making it easier to ship important parts and equipment.
According to a Reuters poll, exports are likely to have increased by 8% year on year in May, following a 3.9% increase in April, while imports are expected to have increased by 2%. Thursday will see the announcement of trade statistics.
At the same news conference, Zhou Yu, a representative of the People’s Bank of China, said that China would maintain a stable currency and increase the yuan’s flexibility.
(This article corrects the start of Shanghai’s complete lockdown to April, not March. In paragraph five)
