China's foreign trade estimated to have increased by 20% in 2021

China’s foreign trade is estimated to have grown in 2021 at an annual growth rate unseen for nearly a decade, but growing uncertainties are likely to add pressure to both demand and supply in 2022, officials and experts said, as they urged the authorities to beef up efforts to support the upbeat momentum. Ren Hongbin, Vice Minister of Commerce, said at a news briefing in Beijing that China’s imports and exports of goods are forecast to reach USD6 trillion in 2021, surging more than 20% year-on-year, with the yearly added trade value of USD1.3 trillion equivalent to the combined growth in the past decade. China’s contribution to global exports and imports in the first three quarters reached record highs of 15% and 12.1%, respectively. However, facing multiple challenges that include softer overseas demand, surging raw material and logistics prices and a labor shortage, the foreign trade sector is suffering from “shrinking demand, supply shocks and weakening expectations”, Ren said.

Analysts have expressed concerns that the Omicron variant is likely to dent global economic recovery, and the pandemic’s impact on global industrial and supply chains is set to continue, leading to more uncertainties in overseas demand and higher trade costs, they said. Zhou Xuezhi, Researcher with the Institute of World Economics and Politics at the Chinese Academy of Social Sciences (CASS), said weaker demand in developed economies due to the expected pullback of fiscal and monetary stimulus, will also likely have an impact on China’s exports. To shore up foreign trade growth, Ren said China will strengthen cross-cyclical adjustments.

Efforts will also be made to promote innovation and cultivate new fields of competitiveness, including expanding cross-border e-commerce pilot areas, improving overseas smart logistics platforms, and building more offshore trade hubs to increase digital trade. Green trade will also be promoted, according to Ren. Li Xingqian, Director General of the Department of Foreign Trade at the Ministry of Commerce, said the entry into force of the Regional Economic Comprehensive Partnership will unleash huge market potential and help China’s foreign trade to grow, the China Daily reports.