China promised more measures to stabilize trade as pressure mounts on the government to boost the economy amid worsening domestic COVID outbreaks.
The country will optimize a list of imported retail goods for cross-border e-commerce and expand import categories to increase imports of consumer goods, according to guidelines issued by the nation’s cabinet.
China will also ensure a stable supply chain for trade and encourage financial institutions to offer greater support to small business enterprises.
The State Council called on financial institutions to further increase credit support to businesses, while the guidelines reaffirmed that China it will keep the yuan exchange rate in a relatively stable equilibrium to boost the ability of trading companies to deal with currency risks.
Keeping the economy going has become a more difficult task with a second major Chinese city on lockdown due to the spread of the omicron variant.
Earlier this week, the cabinet promised to accelerate investment in more than 100 key national projects and boost domestic consumption to help stabilize growth.
The latest guidelines come weeks after a vice minister of commerce said that China was facing difficulties “without precedents”To stabilize trade during 2022, as the favorable conditions that drove export growth last year will not be sustainable this year.
Last year, exports of China They remained resilient, providing some support to an economy that has been hit by strong regulatory measures and repeated virus outbreaks and city closures.
But the current trade outlook is less certain as foreign appetite for Chinese goods is likely to weaken if the global economic recovery does not materialize.
Chinese exporters are also struggling with high raw material prices and rising labor and freight costs.
