Global trade frictions, or barriers to trade that hinder commerce, remained at a high level in February 2024, according to data released by China's trade promotion body on Sunday.
The global economic and trade measures index, introduced by the China Council for the Promotion of International Trade (CCPIT), remained elevated in February, reaching 299. This marked an increase of 189 points from the previous month but a decrease of 28 points year on year.
Monetary value associated with global trade friction measures rose by 8.3 percent compared to the previous year, or by nearly 67 percent compared to the previous month.
The index is a tool used for assessing and measuring the level of economic and trade frictions on a global scale. It serves as an indicator of the degree of trade barriers encountered by countries in their international trade endeavors.
It looked into trade frictions in 20 countries and regions, including the United States, China, and the EU, and the use of trade measures such as import and export duties, trade remedies, and technical barriers.
The United States, India, and the EU ranked the top three economies with the highest trade friction sub-indices.
A sub-index measuring trade frictions between China and 19 other countries and regions reached 1,384 in February, an increase of 1,167 points compared to January.
"The United States had the highest trade friction index with China, followed by the United Kingdom, with Brazil ranking third," said Zhao Ping, the CCPIT's spokeswoman, at a press conference in Beijing on Sunday.
According to the data, barriers to trade mainly involve transportation equipment, electronics, mechanical equipment, light industry, pharmaceuticals, and chemical industries.
Among the 13 major industries monitored, the transportation equipment industry experienced the most severe trade friction.
Global trade frictions remain severe in February: data
The ultra-long special treasury bonds newly issued by China will play a positive role in optimizing debt structure, stimulating investment and consumption, according to Chinese economists.
China will start to issue the first batch of one trillion yuan (about 140 billion U.S. dollars) ultra-long special treasury bonds on Friday to raise funds for major national strategies and build up security capacity in key areas.
The central debt sales will run from May through November. The bonds will include 20-year, 30-year and 50-year securities, according to a statement released by the Ministry of Finance on Monday.
"All underwriting institutions and investment entities can have clear expectations, which reflects the scientific nature of our financial management. On the basis of the first quarter, the ultra-long special treasury bonds will leverage social investment. It also has a positive effect on the capital arrangement and financial stability of the entire market," said Li Xuhong, vice president of Beijing National Accounting Institute.
Li said that judging from the main investment areas, the ultra-long special treasury bonds will be used exclusively for the implementation of major national strategies and the construction of security capabilities in key areas.
"For example, [our ultra-long special treasury bonds] support self-reliance in high-level science and technology, as well as our integrated urban and rural development, coordinated regional development, and food and energy security. In addition, we support the project of Building a Beautiful China. These are all key areas of our support," Li said.
Industry insiders said that ultra-long special treasury bonds are guaranteed by national credit and have the advantages of low risk and strong liquidity. In addition, the yield is higher than that of short and medium treasury bonds.
"Based on previous experience of issuing special government bonds, it is expected that the issuance interest rate will refer to the interest rate of relevant maturity government bonds in the secondary market. With the issuance of ultra-long special treasury bonds, the pace of fiscal expenditures will continue to accelerate, further boosting aggregate demand, and providing stronger support for people's livelihood and technological innovation, thus effectively supporting the continued improvement of the overall economic situation," said Gao Ruidong, chief economist at Everbright Securities.
Ultra-long treasury bonds to optimize debt structure, stimulate investment and consumption: experts
