In 2021, the total import and export value of China's goods trade increased by 21.4% year-on-year - the scale of foreign trade reached a new high

At the press conference held on January 14th, Li Kuiwen, spokesman for the General Administration of Customs and Director of the Department of Statistics and Analysis, introduced that in 2021, China's foreign trade imports and exports achieved rapid growth, with a year-on-year increase of 21.4% in the total value of goods trade imports and exports, with a new high scale and steady improvement in quality, achieving a good start to foreign trade during the "14th Five Year Plan".

Import and export scale exceeded US $6 trillion

In 2021, China's foreign trade delivered a brilliant transcript——

In terms of US dollars, China's import and export volume reached US $6.05 trillion in 2021. Eight years after reaching US $4 trillion for the first time in 2013, it crossed two major steps of US $5 trillion and US $6 trillion within the year, reaching a record high. The annual increase in foreign trade reached 1.4 trillion US dollars. In RMB terms, the total import and export value of China's goods trade in 2021 reached 39.1 trillion yuan, a year-on-year increase of 21.4%.

Both imports and exports with major trading partners have achieved stable growth, and imports and exports to countries along the "the Belt and Road" have grown faster. In 2021, China's import and export to countries along the "the Belt and Road" will grow by 23.6%, 2.2 percentage points higher than the overall growth rate.

The mode of trade was further optimized, with the import and export ratio of general trade exceeding 60%. In 2021, China's general trade import and export will reach 24.08 trillion yuan, an increase of 24.7%; Import and export of processing trade reached 8.5 trillion yuan, up 11.1%.

The vitality of foreign trade operators has been effectively stimulated, and the import and export of private enterprises has become more active. In 2021, China had 567000 enterprises with import and export performance, an increase of 36000. Among them, the import and export of private enterprises reached 19 trillion yuan, up 26.7%, accounting for 48.6%, up 2 percentage points.

The export and import of mechanical and electrical products have maintained a good growth trend. In 2021, China's export of mechanical and electrical products reached 12.83 trillion yuan, an increase of 20.4%, accounting for 59% of the total export value, with automatic data processing equipment and its components, mobile phones, and automobiles increasing by 12.9%, 9.3%, and 104.6%, respectively. During the same period, the import of mechanical and electrical products reached 7.37 trillion yuan, an increase of 12.2%, accounting for 42.4% of the total import value, including an increase of 15.4% in the import of integrated circuits.

Three factors support foreign trade growth

What are the supporting factors behind the fact that foreign trade has broken through the two levels of US $5 trillion and US $6 trillion within a year?

Li Kuiwen analyzed that this is primarily due to China's economic development and maintaining a global leading position in epidemic prevention and control. In 2021, China's imports and exports of intermediate products increased by 24.9% and 28.6% respectively, while imports of consumer goods increased by 9.9%. "China's economy is resilient and its long-term fundamentals will not change. Domestic production and consumption demand provide strong support for the stable growth of foreign trade," Li Kuiwen said.

The second is that the global economy maintains a recovery trend. In 2021, the global economy as a whole showed a recovery trend, with China's exports to the European Union and Africa growing by more than 20%, and exports to Latin America growing by more than 40%.

Third, the effects of policies and measures to stabilize growth continue to manifest. Since last year, China has introduced a series of policies and measures to stabilize the main body, stabilize the market, and ensure the stability and smooth flow of the supply chain of the foreign trade industry chain. For example, maintain reasonable and sufficient liquidity, continue and improve some tax and fee reduction policies; Accelerate the development of new forms and models of foreign trade, further deepen the reform of cross-border trade facilitation, and promote the reform and innovation of trade and investment facilitation in free trade pilot zones. "A series of policies have been implemented in detail and their effects have been continuously released, helping foreign trade enterprises solve difficulties, stimulating the vitality of market entities, and becoming an important support for stable growth of foreign trade," Li Kuiwen said.

Do a good job in cross cycle adjustment and stabilize foreign trade

How to continue to stabilize the basic foreign trade market in 2022?

"Looking ahead to this year, foreign trade is facing an increase in uncertainties, instability, and imbalances. China's economic development is facing triple pressures of demand contraction, supply shocks, and weakening expectations. The global epidemic situation remains severe, the external environment is becoming more complex, severe, and uncertain, and the recovery trend of international demand is slowing. Adding to the high foreign trade base in 2021, foreign trade operations will face some pressure in 2022," Li Kuiwen said, While recognizing difficulties and challenges, it is also important to note that the fundamentals of China's strong economic resilience and long-term improvement will not change, and there is a guarantee to stabilize the basic situation of foreign trade.

Recently, the General Office of the State Council issued the "Opinions on Doing a Good Job in Cross Cycle Adjustment and Further Stabilizing Foreign Trade", proposing 15 specific policies and measures to stabilize foreign trade from four aspects: strengthening fiscal, tax and financial policy support, encouraging the development of new forms of foreign trade, alleviating pressure on foreign trade supply chains such as international logistics, and supporting key industries and enterprises. Li Kuiwen expressed that the customs will continue to do a good job of "six stability" and "six guarantees", coordinate development and security, coordinate port epidemic prevention and control, promote stable growth of foreign trade, strengthen supervision and optimize services, continue to optimize the port business environment, better service, high-level opening, high-quality development, do a good job of cross cycle adjustment, and promote the stable development of foreign trade.

On January 1st this year, the Regional Comprehensive Economic Partnership Agreement (RCEP) officially entered into force, marking the official departure of the world's largest free trade zone. In terms of accelerating the promotion of international mutual recognition cooperation for "Certified Operators" (AEO), up to now, China has signed AEO mutual recognition agreements with 21 economies such as the European Union and Singapore, covering 47 countries (regions), with the total number of countries (regions) ranking first in the world. The goods exported by Chinese AEO enterprises to mutually recognized countries (regions) can directly enjoy the convenience measures such as reducing inspection and giving priority to handling implemented by local customs, reducing trade costs and enhancing enterprise vitality. (Reporter Wang Wenzheng)