Foreign trade innovation measures make opening up benefit the world

The fourth in a series of reports on China’s new measures to expand and open up.
Foreign trade innovation measures make opening up benefit the world

On April 13, 2018, at the Qingdao Port Foreign Trade Container Terminal in Shandong Province, vehicles were transporting containers loaded and unloaded by liner ships.Yu Fangping (People’s Vision)

On May 6th, 2018, China Yiwu Import Commodities Expo opened. The picture shows the exhibitors introducing Turkish craft lamps to foreign businessmen.Gong Xianming (People’s Vision)

On April 15th, in the import exhibition area of the 123rd Canton Fair, a company from South Korea was promoting a blender.Xinhua News Agency reporter Liang Xushe

Jiangsu Nantong Comprehensive Bonded Zone Import Commodities Direct Marketing Center, where more than 8,000 kinds of imported commodities from more than 20 countries and regions such as France, Germany, Japan and South Korea are displayed and sold.Xu Congjun (People’s Vision)

On April 10th, the Supreme Leader of president, China attended the opening ceremony of the 2018 annual meeting of Boao Forum for Asia and delivered a keynote speech. The Chairman of the Supreme Leader announced the major measures that China will take in opening wider to the outside world. The Supreme Leader pointed out that China does not aim at pursuing a trade surplus, and sincerely hopes to expand imports and promote the balance of current account.

In recent years, the China government has always attached importance to changing the development mode of foreign trade, not aiming at the pursuit of trade surplus, promoting the balanced development of foreign trade, actively expanding imports, and continuously improving the breadth and depth of market opening.

Taking the initiative to expand imports as one of the four major measures to open wider to the outside world, this innovation in foreign trade practice once again shows the world China’s determination and confidence to actively open up to the outside world, which is generally welcomed by the international community. International public opinion believes that China’s clear release of such a positive import policy signal shows China’s responsibility for maintaining the process of globalization and free trade.

This year will be the first year to expand imports.

"2018 will be the first year for China to expand imports." Lu Jinyong, a professor at university of international business and economics Institute of International Economics and Trade, judged this. He believes that the policy information on "expanding imports" released by the Chairman of the Supreme Leader in the keynote speech at the opening ceremony of the 2018 annual meeting of Boao Forum for Asia is positive and clear.

A series of actions, such as reducing tariffs, increasing the import of products with distinctive advantages, accelerating the process of joining the World Trade Organization’s Agreement on Government Procurement, and holding the first China International Import Expo, show that China is starting from the direction of policy strength, taxation and building an international trade platform to expand imports.

In terms of tariffs, in recent years, China has substantially reduced import tariffs on some products. According to the data of the Ministry of Commerce, as of January 11th, 2018, China has achieved zero tariff on more than 8,000 kinds of imported products. Taking agricultural products as an example, the import tariff of red wine in Georgia and Chile has been reduced from 14% to 30% to zero. Taking industrial products as an example, the import tariffs on some Swiss watches have been reduced by 50%; South Korea’s import tariffs on refrigerators, rice cookers and other products have been reduced by 40%, and will be reduced to zero tariffs in a few years. Gao Feng, a spokesman for the Ministry of Commerce, said that products with nearly one-third of China’s total imports can enjoy preferential tariff treatment in the FTA, most of which are end consumer goods.

China has also actively guided the import of products with distinctive advantages. On May 1st this year, China abolished import tariffs on 28 drugs, including anticancer drugs, and encouraged the import of innovative drugs. Experts in the industry have assessed that the import of anti-cancer drugs is expected to achieve a price reduction of at least 20% after comprehensive consideration of measures such as zero tariff on imports, reduction of VAT tax burden and centralized government procurement. This means that the cost of importing anticancer drugs from China market can be greatly reduced, and the drug quality and legal problems caused by "Haitao route" can be avoided.

Experts pointed out that the import trade platform that China is building mentioned by the Supreme Leader in his speech on April 10th will be an important support for China to actively expand imports. In this regard, Xing Yuqing, a professor at the National Policy Research Institute of Japan, said that China will expand its domestic market, build a larger import platform, greatly reduce tariff and non-tariff barriers, and lower the threshold for foreign investment to enter oil refining, communications, finance and Internet services, which will bring new growth impetus and source to China’s economy. He said: "I believe that many enterprises in China will win the competition with foreign capital. An open China will become a defender of the fairness and stability of the international trade order. "

Increasing imports and promoting consumption return

On the second day of the May Day holiday, Wang Lewei, a resident of Shilibao, Chaoyang District, Beijing, and his family came to the nearby box horse fresh supermarket. Australian lobster, French oysters, Russian king crab, Norwegian arctic cod … are not only rich in variety, but also affordable. Wang Lewei’s family enjoyed a delicious imported seafood dinner. "Before I wanted to eat imported seafood, I had to go to a big hotel, which was expensive. Now I can feast my eyes on it in the supermarket. It feels great."

Thanks to the development of new formats such as cross-border e-commerce and the reduction of import tariffs, more and more high-quality consumer goods from all over the world have entered China. "Easy to buy the world" has brought convenience and dividends to consumers. "Expanding imports has limited impact on domestic consumer goods. More importantly, in the long run, expanding imports is of great significance for promoting industrial transformation and promoting consumption upgrading. " Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade, said.

Huang Songping, spokesman of the General Administration of Customs, said that this year, we will reduce the import tariffs on automobiles by a considerable margin, and at the same time reduce the import tariffs on some other products, and strive to increase the import of featured and advantageous products with concentrated demand from the people. Lu Jinyong believes that moderately expanding imports can promote and promote the high-quality development of China’s economy in many ways.

"Some imported consumer goods are not available in China before, which may refresh domestic consumer awareness and drive domestic related industries to achieve progress from scratch." Ye Changqing, Marketing Director of Shenzhen Baoshijie Sanitary Ware, said that a few years ago, many domestic consumers didn’t know about smart toilet seats, and most domestic manufacturers OEM for foreign brands, with few independent brands. Later, with the increase in the import of smart toilet seats, the awareness of domestic consumers is getting higher and higher, and the demand is constantly being released. Many domestic smart toilet seat manufacturers not only have their own brands, but even set up R&D centers in Japan.

In addition, expanding imports will help to keep a large amount of outflow consumption at home.

In 2016, China has become the world’s largest outbound tourism source market and the largest outbound tourism consumer. According to the relevant person in charge of the Ministry of Commerce, according to preliminary estimates, at present, Chinese residents spend about $200 billion a year shopping abroad, and the shopping list includes a large number of high-end goods and daily consumer goods. The price difference between domestic and foreign products is the main reason for consumption outflow.

With the implementation of China’s measures to expand imports, this trend is changing.

"It’s much more convenient to buy imported goods than before." Li Li, an employee of an Internet company in Zhongguancun, Beijing, often buys imported snacks, toys and daily necessities for her children. A few years ago, she either made a big purchase when she went abroad, or entrusted a friend who went abroad to buy it. Nowadays, with cross-border e-commerce, most of the "explosive" imported goods can be easily bought.

Liu Dingming, general manager of Sichuan Hezhongxing International Logistics Co., Ltd., who is engaged in import and export business, believes that lowering tariffs has created conditions for expanding imports of consumer goods and lowering commodity prices, and consumers will directly benefit from it. At present, there are more than 50 merchants imported through the company’s logistics platform, and the goods mainly enter community stores and cooperative O2O stores. "In the future, people will buy some imported goods, and the price will be more favorable."

Zhang Jun, chief economist of Morgan Stanley Huaxin Securities, believes that in the process of economic restructuring in China, in order to achieve consumption upgrading and industrial upgrading, it is an inevitable trend to expand imports. With the increase of residents’ income, the demand for overseas high-end consumer goods is rising, and the corresponding reduction of tariffs on high-end consumer goods can meet the demand brought by this consumption upgrade.

In the context of expanding imports, it is promising to strengthen the docking of domestic and international markets. Zhao Ping said that in November, the first China International Import Expo will be held in Shanghai, which is a major policy announcement and action of our initiative to open the market. For domestic governments and enterprises at all levels, this grand event can also form a positive demonstration effect, create more convenient and diverse display channels for imported products, and better serve China consumers.

Innovative measures bring more "China opportunities"

Practice has proved that China’s expansion of imports not only promotes the sustained and healthy development of the capital market and modern industrial system, but also greatly improves the market environment in China, and brings huge market opportunities to all countries in the world.

Su Jian, executive deputy director of Peking University Economic Research Institute, pointed out that in the 2018 government work report, the expression of expanding imports was "actively expanding imports", while the Boao Forum focused on "actively expanding imports". Higher import tariffs and other taxes and fees are important factors that affect China’s import growth. It can be expected that the reduction of import tariffs will make imports grow considerably.

"China’s expansion of imports is not only conducive to better meeting domestic demand, but also conducive to the world sharing China market opportunities." Huang Zhilong, director of the Macroeconomic Center of Suning Financial Research Institute, believes that China has become the second largest economy in the world, with huge potential in the consumer market. It has taken the initiative to expand imports, which reflects the responsibility of a big country and can bring more development achievements and dividends to the world. For other countries, the increase of China’s imports means the increase of their exports, thus gaining more market returns and creating more employment opportunities.

"China has never taken the pursuit of trade surplus as the goal, but has tried to expand imports through a series of pragmatic measures to promote the balance of current account." Zhao Ping said that according to the data of the Ministry of Commerce, up to now, there are 15 free trade agreements in force in China, involving 23 countries and regions, covering more than 8,000 kinds of zero-tariff imported products.

International public opinion has also responded positively to China’s measures to expand imports.

The US "Wall Street Journal" reported that the Chairman of the Supreme Leader promised China to relax its market access in the fields of finance and manufacturing, which shows that China is committed to defending the free trade system. This information pushed up the global stock market.

Craig emerson, former Australian Trade Minister, believes that the world is encouraged by the Supreme Leader’s proposal that China will take the initiative to expand imports. The first China International Import Expo to be held this year will further prove that China welcomes competitive goods.

Hu Yishan, chief consultant of Malaysia Pacific Research Center, believes that the Chairman of the Supreme Leader announced a series of measures to open the market and expand imports, which made neighboring countries including Malaysia sincerely agree. It is hoped that China will continue to hold high the banner of free trade, oppose trade protectionism and safeguard the authority of the multilateral trading system in the face of rising protectionism and anti-globalization. (Reporter Yang Junfeng)