China’s State Council recently issued guidelines that include steps to stabilise trade as the government sought to prop up slowing economic growth amid worsening COVID-19 outbreaks. The steps include optimising a list of imported retail goods for international e-commerce and expanding import categories to support consumer goods imports. China will also ensure supply chain stability, enhance credit support to small trade firms, and maintain stable currency exchange.
Earlier this week, the State Council also pledged to speed up investment in more than 100 major projects and increase domestic consumption to help stabilise growth. China’s vice commerce minister said in December that China would face “unprecedented” challenges to maintain stable growth in 2022 as rival countries recovered, and favourable factors that underpinned exports last year would not be sustainable this year.
Last year, resilient exports provided some support for the world’s second-largest economy that has been facing regulatory crackdowns and repeated COVID-19 outbreaks. However, the current trade outlook becomes less certain as external demand for Chinese goods is likely to soften if the global economic recovery loses steam. Chinese exporters are also grappling with surging raw material, labour, and freight costs.
