(Bloomberg) – China faces “unprecedented” difficulties in stabilizing trade next year as favorable conditions that have boosted export growth this year will not be sustainable, Commerce Ministry official says .
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Export gains could slow as competing countries recover their production capacities and the inflation that has pushed up export values ââgradually eases, Ren Hongbin, vice minister of the Ministry of Commerce, said at the meeting. briefing in Beijing on Thursday. The rapid gains in exports this year also make the baseline higher for 2022, he said.
China will increase awareness of business enterprises and their ability to manage currency risks, according to Ren. The government will also step up efforts to alleviate pressures related to international logistics and supply chain issues, he said, pledging to actively secure the supply of commodities.
We will “do everything to keep foreign trade within a reasonable range,” Ren said. These intercyclical measures aim to help stabilize trade in early 2022, he said. He expects China’s merchandise imports and exports to grow by more than 20% in 2021 to a total of $ 6 trillion.
Ren’s comments echo concerns raised earlier this week by Trade Minister Wang Wentao, who said it would be difficult for China to keep its trade growth stable next year.
Chinese exports have remained resilient throughout the year, providing some support to an economy that has been weighed down by regulatory crackdowns and repeated virus outbreaks. Overseas shipments have posted double-digit gains every month this year, with the exception of February when shipments jumped 155% from a decline the previous year.
But the trade outlook is less certain, as overseas appetite for Chinese goods is expected to wane if the global economic recovery falters. Chinese exporters are also facing high raw material prices, as well as rising labor and freight costs.
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