How to promote the development of foreign trade in the industrial sector

Release date 2024-11-30 14:45:06 Reading 2

　　How to promote the development of foreign trade in the industrial sector? How to strengthen international exchange and cooperation in industries? The Ministry of Industry and Information Technology has come to answer questions from reporters

　　He Hailin, Head of the Operations Monitoring and Coordination Bureau of the Ministry of Industry and Information Technology: Thank you for your question. Investment, consumption, and exports are the three driving forces of the economy. Since the beginning of this year, China's industrial sector has developed rapidly in foreign trade, making outstanding contributions to stabilizing industrial growth, providing high-quality supply for the international market, and providing broad space for deepening international cooperation in the industrial and supply chains. The Ministry of Industry and Information Technology strengthens policy coordination, deepens international cooperation, and strives to contribute China's strength to building a secure, stable, smooth, efficient, open, inclusive, and mutually beneficial global industrial and supply chain system.

　　Firstly, we actively guide and promote enterprises to integrate into the international industrial and supply chains. Encourage multinational enterprises, especially high-tech enterprises such as biopharmaceuticals and electronic information, to establish research and development centers, pilot platforms, and production bases in China, jointly promote industrial innovation cooperation, promote domestic enterprises to enhance their international business level, and deeply integrate into the global industrial chain and supply chain; Guide enterprises to strengthen cooperation with overseas enterprises through overseas investment, factory establishment, technology authorization, and other methods tailored to local conditions. At the same time, various platforms should be established to guide small and medium-sized enterprises from China and abroad to actively integrate into the global market while sharing the development opportunities in China. For example, the China International Small and Medium Enterprises Expo, founded in 2004, has been held for 19 sessions, with over 56000 participating companies and a contract intention amount exceeding 1 trillion yuan.

　　Secondly, take multiple measures to enhance the reputation of Chinese manufacturing brands. Give full play to the driving role of industrial design in improving quality, enhance the reliability level of electromechanical products and their components, support intermediary organizations to strengthen industry self-discipline, guide manufacturing enterprises to compete in an orderly manner, and improve the product quality of industrial products. Support enterprises to improve their global logistics and service systems, enhance their ability to serve global consumers, deeply implement the "Three Goods" action for consumer goods, and create a matrix of consumer goods brands; Intensify brand protection efforts and maintain the image of Chinese manufacturing brands. In 2024, a total of 72 Chinese companies entered the Fortune Global 500 list, including 25 manufacturing companies.

　　Thirdly, vigorously develop digital trade and green trade. Research and formulate action plans for the digital transformation of the manufacturing industry and the empowerment of new industrialization with artificial intelligence, build a number of intelligent factories and smart supply chains, vigorously develop intelligent logistics equipment, promote the construction of cross-border e-commerce rules that are in line with international standards in areas such as data flow, product traceability, and electronic signatures, and expand new space for digital trade. At the same time, we are deeply implementing the carbon peak implementation plan in the industrial sector and key industries, accelerating the research and application of energy-saving and carbon reduction technologies, and promoting the energy efficiency improvement of key energy consuming equipment; Integrate international carbon footprint accounting and carbon trading rules, guide new energy products to meet the needs of foreign energy transition markets, and vigorously develop green and low-carbon industries and green trade.

　　Fourth, strive to improve the service level of enterprises going global. Guide intermediary organizations to fully leverage their role in market analysis, industry self-discipline, and provide a package of services related to national policies and regulations, green certification, and financial compliance. Focusing on the insufficient capabilities, poor channel information, and weak risk prevention capabilities faced by some small and medium-sized enterprises in "going global", we will organize service agencies to accurately connect with small and medium-sized enterprises with the intention of "going global" and provide specialized services. At the same time, we will collaborate with financial institutions to provide cross-border matchmaking services for small and medium-sized enterprises, building platforms for them to connect supply and demand. As of November this year, nearly 700 matchmaking events for small and medium-sized enterprises have been held both online and offline at home and abroad, helping more than 90000 domestic and foreign small and medium-sized enterprises expand their markets.

　　Deepening reform, layout and opening up, empowering foreign trade growth with stronger momentum

　　Against the backdrop of the continuous evolution of the global economic landscape, the development trend of China's foreign trade has attracted much attention. In the first half of the year, China's foreign trade showed a stable and progressive trend, demonstrating the strong resilience and enormous potential of China's foreign trade in the complex and ever-changing international environment. Analysis suggests that the decisions and arrangements made by the Third Plenary Session of the 20th Central Committee of the Communist Party of China in the field of foreign trade have clarified the path and direction for the future development of China's foreign trade, injecting new development momentum. Looking ahead to the future, China's foreign trade is expected to further expand its broader development space.

　　In the first half of the year, foreign trade made steady progress amidst multiple challenges

　　Since the 18th National Congress of the Communist Party of China, China has implemented a more proactive opening-up strategy and steadily advanced towards building a strong trading nation. Against the backdrop of weak global economic recovery, escalating regional conflicts, and sluggish growth in global trade and investment, China's foreign trade has demonstrated strong development resilience and abundant market vitality. The structure of foreign trade continues to optimize, and the scale of trade has reached new highs. According to data released by the General Administration of Customs, the total value of China's goods trade imports and exports in the first half of the year was 21.17 trillion yuan, a year-on-year increase of 6.1%, surpassing 21 trillion yuan for the first time in history. In the second quarter, it increased by 7.4%, an increase of 2.5 and 5.7 percentage points respectively compared to the first quarter and the fourth quarter of last year. The operation of foreign trade is stable with progress, and the positive momentum is further consolidated.

　　Zheng Wei, Deputy Researcher at the China Service Outsourcing Research Center of the Ministry of Commerce, pointed out that in the first half of the year, China's foreign trade operation showed many highlights: firstly, the trade scale reached a new high, and the fundamentals of foreign trade development continued to improve. Secondly, trading partners are becoming more diversified. China's trade imports and exports with ASEAN, the United States, and South Korea continue to grow rapidly, and ASEAN has become China's largest trading partner. The third is to increase policy support. The stable foreign trade policies introduced since the beginning of this year, such as ensuring smooth traffic, providing financial and tax support, and encouraging the development of new business models, have stimulated the momentum of foreign trade development. The fourth is the impressive growth rate of the "new three types". The export growth rate of green and low-carbon products such as electric manned vehicles, solar cells, and lithium batteries has achieved a leapfrog growth, and the import and export of cross-border e-commerce has also achieved nearly double-digit growth, becoming a new driving force for China's foreign trade growth.

　　The Decision of the Central Committee of the Communist Party of China on Further Deepening the Reform and Promoting Chinese path to modernization clearly points out that the reform of the foreign trade system should be deepened. Propose to build a new system of higher-level open economy, and make multiple deployments such as "strengthening the coordination of trade policies and fiscal, financial, and industrial policies", "actively responding to the trend of trade digitization and greening", and "innovating to enhance service trade".

　　Zhang Xiaotao, Dean of the School of International Economics and Trade at Central University of Finance and Economics, stated that these deployments emphasize both institutional innovation and the comprehensiveness of openness, including attention to new formats and trends such as digital trade, as well as measures to support traditional trade such as building traditional commodity trading centers; Balancing development and security, proposing a sound trade risk prevention and control mechanism, improving the export control system and trade remedy system, demonstrates the systematic, holistic, and collaborative nature of reforms in the foreign trade field.

　　Strengthening collaborative innovation mechanisms to safeguard the steady development of foreign trade

　　Li Yongzhao, Deputy Representative of the Ministry of Commerce for International Trade Negotiations, stated that efforts will be made to create a stable and predictable trade policy environment, strengthen the cultivation of new foreign trade drivers, and enhance the comprehensive competitiveness of foreign trade. Next, we will continue to promote the construction of a comprehensive pilot zone for cross-border e-commerce; Research and introduce special policies for the development of green trade, gradually establish and improve the support and guarantee system for green trade; Support local governments and enterprises to explore the implementation path of digitalization throughout the entire trade chain, guide foreign trade entities to more actively engage in digital transformation, and improve the digital system of trade; Continue to leverage platforms such as the CIIE, Consumer Expo, and Canton Fair Import Expo, promote the negotiation process of free trade agreements with relevant countries and regions, and support the expansion of imports of more high-quality products.

　　Lu Daliang, spokesperson for the General Administration of Customs and Director of the Statistics and Analysis Department, stated that they will continue to implement various policies and measures to stabilize foreign trade, promote the expansion of intermediate goods trade, assist in the import of advanced technology equipment and key components, support the development of new formats such as cross-border e-commerce, and focus on consolidating the positive trend of foreign trade. At the same time, we will closely monitor changes in the situation, strengthen data monitoring and analysis, prepare and supply a new round of customs clearance policies, help enterprises reduce burdens and costs, and fully serve the quality and quantity stability of foreign trade.

　　To implement the spirit of the Third Plenum of the Communist Party of China, all departments need to take active action, introduce and implement policies and measures to promote opening up through reform, combine deepening reform with expanding opening up, strengthen policy coordination, innovate regulatory mechanisms, promote the structure, vitality, and space of high-quality development of foreign trade, and effectively safeguard the steady development of foreign trade.

How to promote the development of foreign trade in the industrial sector

　　Zheng Wei believes that firstly, strengthening policy coordination is crucial. The Decision proposes to strengthen the coordination between trade policies and fiscal, financial, and industrial policies, with the aim of building the institutional and policy support system needed for a strong trading nation. Secondly, promoting the integration of domestic and foreign trade is urgently needed. Faced with the complex international environment, it is urgent to accelerate the integration of domestic and foreign trade reform. This will help promote better connectivity between domestic and foreign markets and enhance the level of trade facilitation. Thirdly, innovative regulatory mechanisms are of great significance. In the era of digital economy, new formats and models emerge one after another. Continuously promoting regulatory innovation in customs clearance, taxation, foreign exchange, etc. will provide a favorable institutional environment for the development of new formats and models. Fourth, we should continue to deepen economic and trade exchanges with countries and regions that jointly build the "the Belt and Road", coordinate and promote major landmark projects and small and beautiful livelihood projects, so that the "the Belt and Road" initiative can better benefit local development.

　　Under the new layout of opening up, the development of foreign trade will have stronger momentum

　　The door to China's opening-up will inevitably become larger, the scope of opening-up will become wider, and the level of opening-up will become higher.

　　Zhang Monan, Deputy Director and Researcher of the US Europe Research Department at the China Center for International Economic Exchange, believes that although the era of high growth in foreign trade has passed, China, as the world's largest exporter, still relies on its strong advantages in the manufacturing industry to support the relative stability and strong resilience of China's trade. In recent years, China's foreign trade and manufacturing industry have continued to climb along the industrial chain, and future foreign trade growth will place more emphasis on quality and structural growth.

　　Zheng Wei analyzed that China's foreign trade will present six development trends: firstly, it will build a new system of open economy at a higher level, and through deepening the reform of the foreign trade system, achieve broader international cooperation and deeper opening up to the outside world. Secondly, the level of institutional openness will steadily improve, and China will achieve integration with international high standard economic and trade rules in multiple aspects. Thirdly, digital trade and green trade will become new growth poles and key driving forces for high-quality development of foreign trade. Fourthly, the expansion and opening up of service trade will steadily advance. By innovating and improving the level of service trade development, the international competitiveness of China's service industry will be further enhanced. Fifth, high-quality joint construction of the "the Belt and Road" continues to develop in depth. A number of major landmark projects will be gradually implemented. While significantly enhancing the stickiness of cooperation between China and the co construction countries and regions, they will also continue to benefit local people and enhance the popularity and reputation of the co construction of the "the Belt and Road" initiative. Six is to actively participate in global economic governance. China will actively participate in high-level international free trade agreement negotiations and make a louder Chinese voice in maintaining the multilateral trading system and participating in the reform of the global economic governance system.

　　Jin Ruiting, Director and Researcher of the Foreign Economic Research Institute of the National Development and Reform Commission, stated that new market demands, investment opportunities, and cooperation projects will continue to emerge in large numbers. China will not only provide broad space for the development of various enterprises, including foreign trade enterprises, but also inject more powerful impetus into the recovery and growth of the world economy.

　　Construction machinery enterprises accelerate their pace of going global

　　Recently, the China Construction Machinery Industry Association released data showing that in the first half of the year, a total of 371700 units of the 12 major categories of products included in the association's statistics were exported, a year-on-year increase of 12.3%. Among the twelve major product categories, ten categories have achieved positive export growth, among which the growth rate of pavers reached 89.5%.

　　Industry experts have stated that in recent years, Chinese construction machinery enterprises have seized opportunities in overseas markets, increased their outward investment, actively explored overseas markets, and continuously innovated international development models, improved their global industrial layout, and internationalization has become a powerful tool for construction machinery enterprises to "cross industry cycles".

　　The proportion of overseas revenue is increasing

　　Overseas markets have become the company's' second growth curve ', "said Zeng Guang'an, Chairman of LiuGong, in an interview with China Securities Journal. In the first half of this year, LiuGong achieved overseas revenue of 7.712 billion yuan, a year-on-year increase of 18.82%, accounting for 48.02% of the total revenue, a year-on-year increase of 4.85 percentage points.

　　In the first half of the year, the company achieved revenue growth in both mature and emerging markets, with emerging markets growing by over 25% and all regions achieving profitability. The growth rates in the African and South Asian markets led the overseas regions, with revenue proportions expanding by 9.4 percentage points and 3 percentage points respectively. The overall business regional structure is more balanced, "said Zeng Guang'an.

　　Not only Liugong, in the first half of the year, Sany Heavy Industry's overseas revenue accounted for 62.23% of its main business revenue; The proportion of Zoomlion's overseas revenue to its main business revenue has increased to 49.1%; XCMG Machinery's overseas revenue accounted for 44% of its total revenue, an increase of 3.37 percentage points year-on-year. Meanwhile, benefiting from the rapid growth of overseas sales, price increases for some products, and improvements in product structure, the overseas gross profit margin of leading construction machinery enterprises has continued to increase, and their profitability has been enhanced. XCMG Machinery stated that the overseas market has huge potential and low cyclical volatility. The increase in the proportion of overseas revenue is expected to further drive its business performance and profitability, thereby steadily crossing the industry cycle.

　　Accelerate the new mode of going global

　　In the first half of the year, the export value of construction machinery in China reached 25.837 billion US dollars, a year-on-year increase of 3.38%. From exporting products to building factories overseas to achieve localized production, and then to improving product technology and entering high-end overseas markets, Chinese construction machinery enterprises have gradually explored a new model of going global from "going out" to "going in" and then to "going up".

　　In an interview with China Securities Journal, Yang Dongsheng, Chairman of XCMG Machinery, said, "We have always regarded internationalization as one of our main development strategies. Currently, XCMG Machinery has gone through the initial stage of trade exports, starting from 'going out' to 'going in', entering a new stage of deepening overseas markets, and forming an international development model that integrates product exports, overseas factory construction, cross-border mergers and acquisitions, and global collaborative research and development

　　XCMG Machinery's marketing network covers more than 190 countries and regions worldwide, providing comprehensive product marketing services, full value chain services, and overall solutions for global customers.

　　Zeng Guang'an told reporters that since internationalization was implemented as a strategy in 2002, LiuGong's internationalization has gone through three stages: "overseas sales, overseas manufacturing, and overseas mergers and acquisitions". Currently, it has more than 30 overseas subsidiaries and institutions, as well as 4 major overseas manufacturing bases.

　　With the deepening implementation of the "go in" strategy, Chinese construction machinery enterprises are paying more attention to the deep integration with overseas local markets. Deepen localized operations by establishing production bases, research and development centers, and service organizations overseas.

　　The relevant person in charge of Sany Heavy Industry stated that in the first half of the year, the company's second phase factories in India and South Africa were under orderly construction. After being put into operation, they can fully cover Southeast Asia, the Middle East and other regions, which will further provide strong support for the company's globalization strategy.

　　Meanwhile, Sany Heavy Industry has established research and development centers overseas to better explore overseas markets. We have established global R&D centers in the United States, India, and Europe, utilizing local talents to conduct product research and development, and better serve global customers, "said the relevant person in charge of Sany Heavy Industry.

　　Moving towards high-end

　　In addition to deepening the localization development of overseas markets, Chinese construction machinery enterprises

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How to promote the development of foreign trade in the industrial sector

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How to promote the development of foreign trade in the industrial sector

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