BEIJING- China will make port operations more efficient and hold more online trade fairs, among new measures to ease pressure on foreign trade, Vice Commerce Minister Wang Shouwen said on Wednesday.
Export growth in the world’s second largest economy slowed to single digits in April, the weakest in almost two years, while imports stayed flat as strict COVID-19 curbs halted factory production and crimped domestic demand.
Logistics efficiency has dropped, supply chains are not running smoothly and soaring raw material prices have put firms involved with international trade under pressure, Wang said at a press conference in Beijing.
“We must be clear about the uncertainties for foreign trade while the global economy recovery remains fragile and demand growth is still slow,” Wang said, adding that rising global inflation will reduce consumer spending on foreign goods.
Widespread and stringent COVID-19 curbs, including a full lockdown of commercial hub Shanghai in April and May, hit Chinese factories hard and caused massive supply chain disruptions.
Wang said China would introduce targeted measures to boost trade, including aid from banks on issues related to currency, shipping costs and export tax rebates.
The transport ministry will help improve port operations and more online trade fairs will be organized to help firms secure orders, Wang added.
The measures are in line with the cabinet’s previously announced policy of boosting foreign trade through export tax rebates and ensuring smooth shipments of key components and equipment.
Exports in May likely grew 8 percent from a year earlier, accelerating from a 3.9 percent expansion in April, while imports were expected to have risen 2 percent, according to a Reuters poll. Trade data will be released on Thursday.
China will keep its currency reasonably stable and strengthen the yuan’s flexibility, Zhou Yu, an official at the People’s Bank of China, said at the same press conference.
Meanwhile, China has issued 4.5 million tons of quotas for refined fuel exports, sources told Reuters on Tuesday, a top-up to the first issue for 2022 to ease high domestic inventories as demand was dented by COVID-19 lockdowns.
The new issue will bring the total of refined fuel export quotas this year to 17.5 million tons, still significantly lower than the 29.5 million tons allotted under the first issue of 2021.
Four firms, including China National Petroleum Corp, China Petroleum & Chemical Corp (Sinopec), China National Offshore Oil Corp and Sinochem Holdings, have been granted the new quotas, the sources said.
The quotas will be divided into general trade, at 3.5 million tons, and tolling, at 1 million tons.
Beijing wants to discourage refiners from pumping surplus fuel, an act seen by the government as derailing its long-term emission battle, by slashing quotas for export.
But the widespread COVID-19 lockdown, starting in March across several Chinese cities, has hammered Chinese fuel consumption and forced refiners to scale back production amid swelling product inventory.
These quotas cover mainly transportation fuels diesel, gasoline and aviation fuel. China separately issues export quotas for very low sulphur fuel oil (VLSFO), used as marine bunker fuel. — Reuters
