China seeks to boost trade as part of economic recovery
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Cargo ships load and unload in Qingdao, Shandong province, earlier this month. Photo: CFOTO/Future Publishing via Getty Images
The Chinese government released a plan on Tuesday aimed at boosting trade amid sagging global demand for the country's exports.
The big picture: After China dismantled its zero-COVID policies last December, its economy expanded 4.5% in the first quarter this year, faster than many analysts expected.
- But some economists caution that China's export sector could continue to suffer as the U.S. and other advanced economies cut their spending as a global recession looms.
Details: As part of the new plan, China will expedite visa processing for overseas businesspeople, while increasing international flights and fully restoring in-person trade shows, the country's State Council said in a statement.
- At the same time, China will encourage more car exports by directly connecting car firms and shipment companies, as well as improving brand marketing, sale and customer service overseas.
- China asked its embassies and consulates to broaden their support for small and medium-sized enterprises to reach overseas markets. The Chinese government hopes to stabilize exports to developed countries, and open up companies to markets in developing regions, including Southeast Asia, the statement added.
- The country will also seek to expand imports of advanced technology equipment and streamline its import subsidies.
Background: The global economic recovery from both the pandemic and Russia's war in Ukraine is on track, but growth remains historically low and financial risks have risen, according to a recent IMF report.
- That report said advanced economies will experience bigger slowdowns this year, further weakening the global demand for goods.
Where it stands: Chinese policymakers are also looking at other ways to stimulate the economy, including by boosting consumer spending and ending a crackdown on China's tech giants, according to Chinese officials.
- The UN projects that India will overtake China as the most populous country this month, which is expected to have broad economic implications for decades to come.
Our thought bubble: Longer term, India may command greater attention from global companies looking for new consumers and a labor force that’s cheaper relative to China’s workers.
Go deeper: China's venture investing had a rough 2022
