The Impact Of The Epidemic On Foreign Trade Is Temporary

- Feb 28, 2020-

According to Xinhua News Agency, the director of the Foreign Trade Department of the Ministry of Commerce said on the 21st that the new crown pneumonia epidemic poses a serious challenge to the current foreign trade operation. Judging from the local and industry reflections, due to the poor logistics and delay of the start of construction, and the Spring Festival factors, it is expected that the growth rate of imports and exports will slow down significantly from January to February this year. At present, the impact of the epidemic is temporary and temporary. China's comprehensive competitive advantage in attracting foreign investment has not changed, and the confidence and strategy of most multinational companies in investing in China have not changed.

Li Xinggan, director of the Foreign Trade Department of the Ministry of Commerce, said at an online policy briefing held on the same day by the Ministry of Commerce that the impact of foreign trade mainly depends on the duration and scope of the epidemic. According to the current assessment, the impact of the epidemic on foreign trade in the first quarter is objective and should not be underestimated, but it is still in an affordable range. In order to minimize the impact of the epidemic on the development of foreign trade, the Ministry of Commerce has issued a series of policies and measures to support foreign trade companies, help foreign trade companies resume work as soon as possible, and effectively improve the compliance rate. There will be a number of follow-up policies to follow up.

"Recently, we have learned that qualified foreign trade companies are stepping up and restarting production, and that the major foreign trade provinces are progressing faster." Li Xinggan said that the Ministry of Commerce will summarize and promote effective local and enterprise resumption practices and share experiences. With the large-scale recovery of logistics and transportation, the supply of the industrial chain is gradually recovering, and the foreign trade enterprises are operating normally, and the foreign trade situation will gradually improve. According to the continuous monitoring and judgment of key foreign trade regions and industries, there will be no large-scale layoffs in the foreign trade field.

"We are confident that we will remain reasonably optimistic about the outlook for imports and exports throughout the year." From the international perspective, foreign demand is generally stable. From a domestic perspective, the fundamentals of China's long-term positive development of foreign trade have not changed, the competitive advantages of foreign trade exist objectively, new trade formats have developed vigorously, and foreign trade momentum has always been strong.

Li Xinggan also said that with the implementation of a series of stable foreign trade policies, the business environment for China's trade development will be further improved, and the level of facilitation will be further improved. With the new staged results of epidemic prevention and control, foreign trade is bound to usher in restorative growth. It is expected that the development of foreign trade throughout the year will remain within a reasonable range.

According to Zong Changqing, director of the Foreign Affairs Department of the Ministry of Commerce, in January this year, the actual use of foreign capital in the country basically continued the steady growth momentum since last year, but the growth rate has declined compared with the same period last year, and the impact of the epidemic has begun to appear. The impact of the epidemic is expected to be more pronounced in February, March and even the first quarter.

He said that in view of the current difficulties and problems faced by foreign-funded enterprises in their production and operation activities, the Ministry of Commerce instructed localities to stabilize stocks and increase growth, and do everything possible to serve foreign-funded enterprises and attract investment. Recently, the Ministry of Commerce guided Shandong Province to promote the resumption of work of 32 Korean-owned auto parts companies by February 15 to stabilize the global automotive supply chain. The resumption rate of key foreign-funded enterprises in Shanghai, Shandong, Hunan and other places exceeded 80%. It is expected that at the end of February, most places will resume work and production.

Zong Changqing introduced that the year to stabilize foreign investment should focus on five aspects: First, further promote the implementation of foreign investment policies, and guide foreign-funded enterprises to make full use of the support policies to respond to the outbreak. Second, continue to reduce the two negative lists of the country and the Pilot Free Trade Zone, and further expand the field of foreign investment access. The third is to further improve the open platform. Guide the free trade pilot zone to speed up the reform, opening up and innovation pilots, and cultivate and expand an export-oriented economy. Revise the assessment methods for national economic development zones and increase the weight of foreign trade assessment indicators. The fourth is to further strengthen investment protection. Fifth, further optimize the investment environment.

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