CGTN:
We know that in 2021, China's foreign trade grew 21.4% to 39.1 trillion yuan. There are reports saying that due to such a high base, China will face greater pressure and challenges in stabilizing foreign trade this year. So, what's your take on that? In addition, would you like to introduce the measures taken by the Ministry of Commerce to ease difficulties for export companies? What are the arrangements for stabilizing industrial chain and supply chain? Thanks.
Wang Wentao:
Thank you for your questions. I'd like to answer your questions. Your questions are mainly about how to see and how to do.
About how to see, you mentioned that China's foreign trade grew by 21.4% to 39.1 trillion yuan last year, which is in yuan terms. While in U.S. dollar terms, China's foreign trade move up another notch to $6.05 trillion, exceeding $5 and $6 trillion consecutively, with a growth rate of 30%, the highest number since 2010. Net exports of goods and services contributed 20.9% to the economic growth. In the first three quarters of last year, in U.S. dollar terms, the share of China's foreign trade in the global market hit a record high. It reached 15%, the highest since 1958 as a single economy in the world, which injected new impetus to world economic recovery and development. The strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core has been fundamental to the hard-won achievements we made last year. And such achievements could not have been made without the consistent hard work of China's export companies.
You just mentioned that certain reports questioned how China will do this year on such a high base. I believe that not only reports, our research also showed that we will face huge pressures this year, and the situation is quite complicated and serious. The Central Conference on Economic Work pointed out the threefold pressure faced by the Chinese economy in 2022, namely the contraction of demand, supply shocks, and weaker expectations. In terms of demand contraction, repeated resurgences of the COVID-19 pandemic still exist around the world, the global recovery is somewhat shaky, and foreign demands remain uncertain. Certain international organizations, such as IMF and World Bank, have downgraded the global economic growth forecast of 2022. The latest report from WTO signaled a cooling of merchandise trade growth. In terms of supply shocks, we have seen that the supply of raw materials and bulk commodities is still not back on track. In other words, the bottlenecks in the supply chain are still not addressed, which we estimate is also hard to be eased in the short term. In terms of weaker expectations, export companies are still beset by shortages of containers and labor. And the price of raw materials and shipping costs are still relatively high. According to our surveys, in particular, the earning performance of some small and medium-sized export companies is not optimistic, which also shakes their confidence to receive orders.
In addition, some short-term factors influencing the export faded away. We also analyzed that. Last year, China's foreign trade registered a high growth rate attributable to certain short-term factors. For example, more orders were received at home instead of overseas. Factors also include exporting epidemic prevention supplies and the "stay-at-home economy." With such factors fading away, China will face more significant challenges in stabilizing foreign trade this year. Also, you mentioned the high base in your question. China's foreign trade grew by 30% last year, in U.S. dollars terms. The pressure to expand the growth is quite considerable on such a high base.
In the face of these difficulties and challenges, we have stepped up efforts to implement policies in accordance with the plans of the CPC Central Committee and the State Council, and rolled out multiple measures to stabilize the foreign trade, including special actions of adopting cross-cyclical adjustment measures, diversifying market, ensuring smooth operation of the supply chains for foreign trade, and promoting innovative and high-quality foreign trade. In the first two months, the foreign trade has basically maintained stable, a stable start of the year. We are confident to accomplish the targets and tasks for the whole year and keep the fundamentals of foreign trade and foreign investment stable. Our efforts will focus on the following three aspects:
First, we will implement policies and prepare for policy options for stabilizing foreign trade. We will work with all local governments and departments to implement the Opinions on Further Stabilizing Foreign Trade by Adopting Cross-Cyclical Adjustment Measures released by the State Council at the end of last year. We will fully implement the policies on tax and fee cuts, make full use of measures on finance and insurance to benefit businesses, and make meticulous efforts to adopt measures on facilitating trade in order to help businesses, especially micro, small and medium businesses, secure orders, stabilize market expectations, and expand market. Meanwhile, we will keep a close eye on external demand and foreign trade and enhance monitoring and early warnings for policy options.
Second, we will guarantee the stability and smooth operation of the industrial and supply chains for foreign trade. Due to the impact of the pandemic and regional conflicts, the flow of people and port operations are still impeded, the problems of barriers and disruption in the global industrial and supply chains remain prominent whilst some new problems emerge. We will promote the transformation and upgrading of foreign trade bases, support the steady development of processing trade, foster a new batch of the on-site processing on a pilot basis from trade between border residents, further promote the integration of domestic and foreign trade, and foster trade enterprises fitting in with China's dual circulation development paradigm, where domestic and overseas markets reinforce each other. We will also strengthen international cooperation to facilitate international logistics and settlement, improve the level of trade facilitation, and promote upstream and downstream coordination of industrial and supply chains
Third, we will continue to promote innovative development of foreign trade. In order to promote the steady and high-quality development of foreign trade, enhance its comprehensive competitiveness, we need to give higher priority to innovative development. Last month, the State Council approved the establishment of 27 new comprehensive pilot zones for cross-border e-commerce. Today, the new list of imported goods for cross-border e-commerce retails has been officially implemented. The goods on the list have been further increased with categories expanded. Meanwhile, we will strength our support for the development of overseas warehouses, build and improve overseas warehouse networks, promote the construction of overseas intelligent logistics platforms, cultivate a number of offshore trading centers in cities (regions), develop and expand new forms and models of foreign trade, and promote the development of trade at a higher level and with higher quality. We will also develop demonstration zones for the innovative development of trade in services, create a number of digital pilot zones for global trade, and develop green trade. Thank you.
