China’s robust foreign trade upshot of opening up efforts

Since the introduction of its reform and opening-up policy, China has continued to accomplish tremendous economical development, becoming the second-largest economy of the world against all the odds.

Nothing has stopped its robust journey to be a global monetary engine and factory due to its pragmatic monetary strategies and plans.

China has stunned the world through staging a miraculous and practically unthinkable turnaround from the devastating impact of the COVID-19 pandemic on its economy as well as its public health. It's the only major country on earth posting positive monetary growth in 2020.

The united states has proved its mettle in handling the economic crisis by ensuring vast growth in its foreign trade, when it comes to both exports and imports, in the first quarter of the year.

There is a 29.2% year-on-year surge in foreign trade to 8.47 trillion yuan ($1.29 trillion). Exports soared 38.7% on a yearly basis to 4.61 trillion yuan, while its imports jumped 19.3% year-on-year to 3.86 trillion yuan, in line with the latest data released by the country’s General Administration of Customs.

That is a manifestation of China’s continued checking efforts which have indeed become the primary driving force of its robust growth of foreign trade and overall monetary development. Using its commitment to becoming a lot more open, China has adopted a number of policies to promote high-standard liberalization and facilitation of trade and investment, like the establishment of free trade zones, holding import expos, reducing entry barriers of foreign capital, together with promoting trade negotiations.

All have drastically eased market access, and contributed to its target to create globally-oriented networks of trade, investment and financing, production, and services, to be able to promote international economic cooperation.

The free trade zones emphasize the importance of advanced systems instead of preferential policies. China has introduced special tax incentives for foreign investments in the zones. It has granted greater independence on international trade activities.

They are attracting and utilizing foreign capital by way of joint ventures and partnerships along with wholly foreign-owned enterprises. Export-oriented products and goods are being produced, leading to positive growth of exports and foreign direct investment.

So far, China has generated 12 large free trade zones. They employ 4% of the entire workforce and handle goods representing around 17% of total Chinese imports. Around half of these goods are for domestic consumption and half are for re-export.

Electronics and machinery passing through them account for 20% of imports within their respective sectors, while transport goods make up 25% imports for the reason that particular sector, based on the European Central Bank.

Following a principle of win-win cooperation, the Belt and Road Initiative has also helped to expand China’s foreign trade and promote trade cooperation with other countries. In the first quarter, China’s total trade with BRI countries increased 21.4% to 2.5 trillion yuan.

Bangladesh is among the active and important participants of the initiative. It has been getting zero tariffs on 97% of its goods exported to China from this past year. A total of 8,256 Bangladeshi products are up to now exempt.

Other measures, like holding an import expo, reducing entry barriers of foreign capital, trade negotiations, and regional and multilateral trade talks have entailed further deepening of bilateral and multilateral monetary and trading engagements of China with all of those other world.

China’s economical and trading engagements with other countries resulted in significant growth in the first quarter of 2021. Official data shows its exports to the European Union rose 36.4% year-on-year, and exports to the U.S. surged 61.3%.

As China has entered a new era of development, its endeavors to market further opening up can help it establish better connections with all of those other world and permit China to share more opportunities for win-win cooperation with other countries, thus to foster global financial growth and prosperity.