China taps measures for qualitative, quantitative foreign trade growth: vice minister

China will issue a series of targeted, practical and effective measures to stabilize foreign trade as development opportunities and challenges are concurrent, the Ministry of Commerce said on Friday.

At a press conference, Vice Minister of Commerce Guo Tingting briefed the media on the outlook of China's foreign trade in the next phase, which features both opportunities and challenges.

She said that Chinese economy has maintained a steady recovery with foundations consolidated.

China's gross domestic product (GDP) grew 5.3 percent year on year in the first quarter of 2024, and the value-added industrial output, an important economic indicator, went up 6.1 percent year on year in the period, having laid a solid foundation for the country's stable fundamental of foreign trade.

Business expectations have continuously improved, and firms' confidence in the future of Chinese economy is on the rise, Guo said.

The purchasing managers' index (PMI) for China's manufacturing sector came in at 50.8 in March, bouncing back to the expansion zone.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

According to a recent survey conducted by the ministry among over 20,000 exhibitors at the ongoing China Import and Export Fair, also known as the Canton Fair, 81.5 percent of the respondents reported an increase or stability in their orders, marking a 16.8-percentage-point increase from the previous session, Guo said.

She noted that key industries stage a steady recovery with stronger impetus for development, adding that after two years of downturn in the electronic information industry, trade of key products is gradually recovering.

In the first three months of this years, China's imports of integrated circuit saw a year-on-year increase of 14.3 percent, and exports of computer and parts registered a growth of 8.6 percent.

In terms of challenges, the growth of external demand is expected to be sluggish, Guo said.

The latest edition of World Trade Organization's (WTO) "Global Trade Outlook and Statistics" lowered the growth rate of world merchandise trade volume in 2024 to 2.6 percent, 0.7 percentage points lower than the forecast in October last year.

In addition, the risk of geopolitical conflicts is increasing, with trade protectionism on the rise, she said, adding that enterprises are facing more interference and difficulties in exploring the market.

"Currently, the Ministry of Commerce is working together with local governments and other departments to dwell and roll out a series of targeted, practical and effective measures to stabilize foreign trade, helping foreign trade enterprises strengthening dynamism and expore market. We have the confidence and capability to achieve the foreign trade goal set for this year by elevating quality and stablizing quantity, "said the vice minister.

China taps measures for qualitative, quantitative foreign trade growth: vice minister

Customers in Shanghai are flooding back to brick and mortar stores to upgrade their home appliances thanks to advances in energy efficiency and the availability of subsidies offered by local government, home appliance brands and retailers.

A store in Shanghai's downtown Changning District has welcomed an average of 2,800 customers on a daily basis in recent days.

Labels on some home appliances show that customers have access to a 10 percent subsidy as long as the products they buy are energy efficient.

"With this 10-percent subsidy, I decided to make offline purchase at this store. It's cheaper after all," said one customer.

This 10 percent subsidy is offered by the Shanghai government to boost consumption.

Retailers are also offering subsidies, further driving up consumption.

"If a customer is buying a product with grade one energy label, while at the same time has an old machine for replacement, the customer can enjoy a 10 percent subsidy from the government. And our platform and the manufacturer together offer a 10 percent subsidy for trade-in goods. And we are also offering an additional seven to eight percent subsidy for sets, and a five percent subsidy for single items. So the customer can generally get a 35 to 40 percent subsidy," said Yang Xu, procurement and sales manager with a Shanghai branch of China's e-commerce giant JD.com.

Noticeably, people are willing to buy more products, especially more high-end models.

"Things are now cheaper. So I have money left for high-end products. I've spent 20,000 yuan (about 2,764 U.S. dollars) here. In the past, I would not choose a refrigerator of more than 13,000 yuan (about 1796 U.S. dollars). I would only buy one with half its price. And I was not planning to buy a TV. But now, I've decided to buy one," said one customer.

Boosting consumption is just one upside of such trade-in programs. Replacing old machines with more energy efficient models also aligns with the country's carbon reduction goals.

China has pledged to achieve peak carbon emissions by 2030, and carbon neutrality by 2060.

Home appliances trade-in programs boost consumption, protect environment