Workers load goods for export onto a crane at a port in Lianyungang, Jiangsu province, China June 7, 2019.
Reuters
China’s Commerce Ministry expressed concerns on Wednesday about the increasing influence of non-economic factors in the country’s foreign trade. The ministry stated that these factors are creating an “extremely severe” situation in the second half of this year.
Li Xingqian, the head of the ministry’s external trade department, highlighted the “forceful push for ‘decoupling,’ ‘severing [supply] chains,’ and so-called ‘de-risking'” by certain countries, which he believes are deliberate obstacles impeding normal commerce. Li made these remarks during a press conference discussing the ministry’s work in the first half of the year.
In recent months, China’s exports have experienced a steep decline due to the global economic slowdown.
Li acknowledged this overall slowdown and noted that the trade growth during the three years of the Covid-19 pandemic set a high base for this year’s figures.
Li also addressed the issue of supply chain diversification, stating that some countries’ politicization of trade has led to the relocation of orders and production, negatively impacting suppliers and buyers’ economic interests. He assured that the ministry would assist businesses in dealing with “unreasonable trade restrictions.”
The ministry did not provide any information about its own recently announced export controls, set to be implemented on August 1 for two key metals.
Notably, the United States has been imposing its own export controls to limit China’s advancements in high-end technology. Trade tensions between the two countries have escalated in recent years, prompting other nations to take similar actions.
On the other hand, China is actively seeking to attract and retain foreign investment. Prominent business leaders, such as Tim Cook from Apple and Elon Musk from Tesla, have visited China since the country relaxed its border restrictions this year.
The Commerce Ministry revealed that Minister Wang Wentao has already met with over 20 executives from foreign companies this year. The ministry expressed its commitment to organizing regular roundtables with foreign businesses in China to address operational challenges.
Among its plans, the ministry intends to introduce changes allowing foreign investors to increase the size of their strategic investments in listed companies.
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