The General Office of the State Council released 18 measures to stabilize foreign trade, attracting attention in many areas.

On Tuesday evening, 2023, the General Office of the State Council issued the “Opinions on Promoting the Stabilization and Optimization of Foreign Trade,” proposing 18 measures in five major areas: strengthening trade promotion and expanding markets, stabilizing and expanding the import and export scale of key products, increasing fiscal and financial support, accelerating the innovative development of foreign trade, and optimizing the foreign trade development environment. These measures cover several important foreign trade sectors, including automobile exports, processing trade, and cross-border e-commerce. Analysts stated that although exports in April may continue to show positive year-on-year growth due to the low base effect, weak demand in the US and Europe after May, as the low base effect fades, will drag my country’s exports back into negative growth, thus adversely affecting economic growth. This is the major background for the issuance of the “Opinions.” They believe that policies such as expanding the import and export scale of key commodities, stabilizing and upgrading processing trade, improving border trade, promoting the healthy, sustainable, and innovative development of cross-border e-commerce, and better leveraging the effectiveness of free trade agreements are particularly noteworthy. Regarding stabilizing and expanding the import and export scale of key products, the “Opinions” emphasize cultivating the advantages of automobile exports and expanding the import of advanced technology and equipment. On the one hand, against the backdrop of unstable global energy supply, the advancement of carbon neutrality, and supply chain disruptions, my country’s new energy-related products still maintain an advantage in the global market. Data from the General Administration of Customs shows that in the first quarter, my country’s automobile (including chassis) exports increased by 81.6% year-on-year, ranking first among major export commodities. Furthermore, data from the China Association of Automobile Manufacturers shows that in the first quarter, exports of new energy vehicles reached approximately 248,000 units, a year-on-year increase of 110%. Going forward, further financial and policy support should be provided to automobile companies to encourage them to conduct overseas brand promotion, sales, and after-sales service, thereby maintaining the competitive advantage of my country’s automobile exports. On the other hand, since last year, both the import value and quantity of high-tech equipment have shown a significant downward trend. This may be related to the US’s technology blockade and export restrictions on my country, especially the “Chips and Science Act” and the “Inflation Reduction Act,” which have had a significant impact. Experts point out that some of my country’s high-end industrial chains are heavily reliant on foreign countries, and it is necessary to further improve the precision of import subsidy policies to reduce the import cost pressure of high-tech equipment. Regarding processing trade, my country’s coastal processing trade bases are currently shifting towards the central and western regions and the northeast, which is of great significance for increasing employment demand in these areas in the short term. In the first quarter, my country’s processing trade exports declined by 12.7%, and imports declined by 23.2%. Processing trade enterprises account for approximately 58% of all foreign-invested enterprises in China. The stable development of processing trade has played a crucial role in stabilizing foreign investment inflows, promoting foreign trade, upgrading industries, and creating employment. Regarding border trade, in the first quarter, as travel restrictions were gradually eased, customs clearance returned to normal, leading to a significant increase in border trade. In March, my country’s exports to Russia increased by 136.4%, and imports increased by 40.5%. Exports to Hong Kong increased by 20%, and imports increased by 95%, demonstrating that the resumption of customs clearance led to a concentrated release and rapid growth in border trade. Actively expanding trade with neighboring countries and regions, optimizing the policy environment for the diversified development of border residents’ mutual trade, and increasing imports from neighboring countries will help mitigate risks and stabilize trade. Regarding promoting the healthy, sustainable, and innovative development of cross-border e-commerce, the “Opinions” mention supporting foreign trade enterprises in expanding sales channels and cultivating their own brands through new business formats and models such as cross-border e-commerce. The document encourages local governments to leverage their industrial and resource advantages to innovate and build comprehensive cross-border e-commerce pilot zones, actively developing the “cross-border e-commerce + industrial belt” model to drive cross-border e-commerce enterprises’ exports to other enterprises. Over the past five years, cross-border e-commerce has developed rapidly, growing nearly tenfold, and is becoming an important growth point for my country’s exports. Regarding better leveraging the effectiveness of free trade agreements, the document proposes measures such as conducting in-depth specialized training. The Regional Comprehensive Economic Partnership (RCEP) came into effect in early 2022, driving growth in my country’s import and export volume with ASEAN. Currently, the RCEP still has potential for trade expansion, and this year my country is expected to promote the establishment of bilateral free trade arrangements with more countries. In short, these measures are expected to enhance the competitiveness of my country’s foreign trade enterprises and inject new impetus into foreign trade development.