China forecasts ‘unprecedented’ difficult 2022 trade

5/5 - (1 vote)

China’s export growth may slow down due to inflationary pressures and competition from other countries.

At a press conference in Beijing today, China’s Vice Commerce Minister Ren Hongbin said the country will face “unprecedented” difficulty in stabilizing trade next year. Accordingly, export growth may slow down due to inflationary pressure and competition from other exporting countries as production gradually recovers after the pandemic.

This year’s fast export growth also makes the base for 2022 higher. As a result, the country will help companies strengthen their ability to manage foreign exchange risk. The Chinese government will also seek to relieve pressure from international supply chain and logistics issues, and is committed to actively ensuring the supply of goods.

China forecasts 'unprecedented' difficult 2022 trade
China forecasts ‘unprecedented’ difficult 2022 trade

“We will make every effort to keep foreign trade activities within a reasonable range,” said Ren Hongbin. In 2021, China is expected to increase import and export turnover of goods by more than 20%, to a total of 6 trillion USD.

Earlier this week, China’s Commerce Minister Wang Wentao also forecast that it would be difficult for the country to maintain stable trade growth next year. China’s exports have remained resilient throughout this year, supporting an economy already under pressure from regulatory tightening and Covid-19 outbreaks. Exports have grown steadily in double digits every month, except for a 155% spike in February due to a deep drop in the same period in 2020.

However, the 2022 trade outlook is uncertain, as foreign demand for Chinese goods could weaken if the global economic recovery cools. Chinese exporters are also facing rising raw material prices, labor and freight costs.

According to a survey by Standard Chartered, the performance of China’s export-oriented small businesses continued to improve in 12, due to a strong increase in orders. However, they are uncertain about the sales and production outlook for the next three months.


Related posts