China on Thursday, in response to US President-elect Donald Trump’s threat to increase tariffs on Chinese goods, announced new measures on Tuesday to support its export sector.
Beijing aims to create a “good environment” for its exports and counter the “unreasonable foreign trade restrictions” imposed by the US.
China’s commerce ministry, in a notice, stated that these measures would help enterprises “actively respond to unreasonable foreign trade restrictions” and “create a good external environment for exports.”
The ministry, in a nine-point document, highlighted the measures aimed at “promoting the stable growth of foreign trade and consolidating and enhancing the trend of positive economic recovery.”
One of the measures includes expanding export credit insurance coverage and increasing financing support for companies engaged in international trade, according to the Hong Kong-based South China Morning Post.
The document also said that e-commerce has become a central component of the country’s economy and highlighted the need to strengthen cross-border e-commerce.
Additionally, the ministry outlined plans to expand specialized exports, such as agricultural products and other commodities, while supporting the import of essential equipment and energy resources.
The notice also mentioned that the visa-free entry mechanism would be expanded in an “orderly manner” to facilitate personnel exchanges further.
US President-elect Donald Trump, who launched a trade war against China during his previous term by imposing a range of tariffs on Chinese exports, has threatened to increase the duties by about 60 percent. This move could severely impact China’s exports, particularly their profitability.
Meanwhile, China’s export sector, the cornerstone of its economy, is struggling with various challenges, including weak domestic consumption and a faltering housing market.
Last year, China’s exports to the US totaled $427.2 billion, despite the tariffs, compared to $147.8 billion in imports from America. In retaliation, China also imposed tariffs on US exports.
Commenting on these measures, Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, described the initiative as promising. He noted that global trade tensions are expected to intensify in the coming years.
“The recently introduced measures are not only a response to renewed US tariffs but also to growing tariffs and non-tariff barriers worldwide. They require Chinese exporters to enhance their ability to handle future trade disputes and investigations more proactively,” he explained to the Post.