On July 9, 2021, State Council released the Opinions of the General Office of the State Council on Accelerating the Development of International Trade by New Business Forms and Models (hereinafter referred to as “the Document”).

The publishing of this document demonstrates that China still attaches significant importance to international trade (importation and exportation) in its economic growth. The key elements of the documents related to products importation into China (which may concern foreign companies) are summarized as follows:

  1.    Make innovative improvement on current regulatory and supervision system in China market and achieve a more convenient administration environment on the investment and trade for both domestic and international companies.

  2.    Encourage foreign investment institutions to participate and compete in China’s payment service market. Support and encourage Chinese banks and payment companies to create better system and environment for settlement service on international trade.

  3.    Optimize current cross-border e-commerce importation list for goods coming into China, while enhancing global cooperation on cross-border logistic system and intellectual property protection.

  4.    Encourage all regions, pilot areas and Chinese enterprises to ensure more international cooperation and communication on new business forms such as cross-border e-commerce, market procurement and the setting up of overseas warehouse. The aim is to establish a better connection between Chinese market and international business.

Since 2020, world economy has suffered great environmental changes due to COVID-19 pandemic. The Document was released when the global market and trade is gradually reinstating with the widespread of the vaccination, which is revealed and proven by the following data and facts in China:

  1.         China market is on a growing trend in its international trade, not only on exportation in general, but on importation as well.

  2.         In June 2021, China’s share in the global importation market reached 11.8% with a 1.4% year-on-year growth. It is so far the highest market share of China on global importation.

  3.         Since March 2021, monthly growth rate on importation into China has kept on a higher level than that of exportation from China.

  4.         Such outstanding data on China’s importation growth is believed to be a result of price raise of staple commodities. The price raise of six main items of staple commodities, including ironstones, copper, steel products and crude oil, has elevated 5.7% of the general importation growth in China, while China’s importation increased 1.4% compared to that of 2020.

  5.         In 2020, China’s import and export volume has reached CNY 1.690 trillion while that of Jan-May 2021 has already reached over CNY 700 billion.

Furthermore, on July 12, 2021, in the regular press conference of the State Council Information Office of P.R.C, REN Hongbin, Assistant Minister of Commerce, and LI Xingqian, Director-General of the Ministry's Foreign Trade Department, specifically interpreted the Document and conducted a Q&A session. It is a sign that Chinese government has paid high attention to the Document.

Based on the Document and related information, BESTAO believes it is obvious that China would stay as a fast-growing market with big opportunities for foreign companies and investors. And we would like to present following suggestions and conclusions:

  1.         China’s policies toward import/export would stay open and positive for enterprise and investors from foreign countries. China is still highly likely to keep enhancing international economic and trade cooperation, as well as optimizing the product structure for import/export.

  2.         The Chinese government still wish to stick to the multilateral trading system. The emphasis from Government on the import/export would finally generate more business opportunities for overseas companies in China market.

  3.         Relevant Chinese authorities have emphasized the importance of the 4th China International Import Expo (CIIE, which will be held from November 5 and 10, 2021 in Shanghai). It could still be an excellent platform for AEM members to sieve bigger market and partners in China.

Chinese resource：http://www.gov.cn/xinwen/2021zccfh/29/index.htm

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