China steps up efforts to bolster foreign trade

In the face of sluggish global trade, China has introduced a series of measures to ensure steady import and export growth and help drive steady economic recovery this year.

In the first 10 months of 2024, China's total foreign trade value amounted to 36 trillion yuan (about 5 trillion U.S. dollars), representing a 5.2 percent year-on-year increase, and its export share in the global market also remained largely stable.

At a press conference on Friday, Vice Minister of Commerce Wang Shouwen said China's foreign trade has continued to show a positive trend, characterized by improved quality and stable volume growth.

However, as a backlash against globalization and rising protectionism dampened the prospect of global trade, China's foreign trade growth has also softened since August.

An official investigation has also found multiple difficulties confronting trade enterprises, from export credit insurance to financing for small and medium-sized enterprises (SMEs) and shipping logistics.

To address these challenges, the Chinese government has intensified moves to bolster foreign trade.

On Thursday, the Ministry of Commerce published a notice focused on measures to strengthen financial support for businesses engaged in international trade, foster new trade drivers such as e-commerce and green trade, and enhance services including favorable visa policies for businessmen.

FINANCIAL SUPPORT

Insurance companies are encouraged to increase underwriting support for "little giant" and "hidden champion" firms in their efforts to explore diversified markets, the notice said.

"Little giants" refer to the novel elites of SMEs engaged in manufacturing, specializing in a niche market and boasting cutting-edge technologies. "Hidden champions" are highly successful yet lesser-known firms.

Financial institutions should optimize financial services for foreign trade enterprises in areas such as credit approval, loan disbursement, and repayment, said the notice.

The central bank has continuously guided financing into the equipment upgrades and green transformation of foreign trade companies and related logistics sectors, Liu Ye, an official of the People's Bank of China, said at the press conference. The country's outstanding green loans increased 25 percent year on year at the end of September.

NEW GROWTH AREAS

The latest policy support emphasized e-commerce and green trade as burgeoning new growth drivers of China's foreign trade.

The e-commerce sector, which features customized services, fast delivery and low costs, is highly competitive, Wang Shouwen said at the press conference. In the first three quarters, China's e-commerce imports and exports reported a vibrant 11.5 percent increase, accounting for nearly 6 percent of total foreign trade.

In the next step, China will help foreign trade companies better align with overseas intelligent logistics platforms and secure overseas orders, and deepen international e-commerce cooperation, such as including e-commerce in new bilateral free trade agreements, Wang said.

Regarding green trade, the commerce ministry will roll out a special policy document to create a sound environment, enhance services and training for related businesses, and expand international green cooperation.

VISA-FREE POLICY

Convenient cross-border travel comes as another important aspect of the trade facilitation measures.

At the press conference, Tong Xuejun, an official of the Ministry of Foreign Affairs, said China has implemented unilateral visa-free policies for 29 countries, including France and Germany, and has achieved full visa exemption with 25 countries.

In the third quarter of 2024, China recorded 8.19 million inbound trips by foreigners, an increase of 48.8 percent compared to the same period last year. According to the official, 4.89 million of these trips were made through visa-free arrangements, up 78.6 percent year on year.

The ministry will continue to refine the visa-free entry policy to facilitate cross-border travel, especially for those engaged in business activities, said Tong.