After an extraordinary period of time, China's foreign trade market finally ushered in a long-lost spring. After the epidemic at the beginning of 2023 and multiple rounds of twists and turns in the global economy.
By 2024, especially in cities like Yiwu, the number of orders has surged, and it is clear that the pace of recovery has been very obvious. But not all areas are going so well, and the real estate market seems to be still sleeping.
2023 is a big test for China's foreign trade experience. The volatility of the epidemic and the uncertainty of the global economy have brought huge challenges to China's export trade. Many businesses are under unprecedented pressure, but this has also fostered an indomitable fighting spirit.
In the first two months of 2024, Yiwu's total import and export value increased by a staggering 47.3% year-on-year. It reflects the vitality of the market and the strong adaptability of foreign trade enterprises.
The unstable international environment, such as tensions in the Red Sea region, has left many European customers worried about possible future freight increases, so they are placing orders in advance in an attempt to lock in costs.
In April, the situation was even more pronounced. A toy factory in Yiwu is a typical example, receiving orders worth more than 3 million yuan, a year-on-year increase of more than 25%.
This growth is not isolated, and the total value of the country's trade in goods has also shown a momentum of growth, 7 percentage points faster than the growth rate in the fourth quarter of last year.
The spring breeze of foreign trade has not blown all over every corner. The other two main drivers of China's economy, investment and domestic demand, have lagged behind. In particular, domestic demand is directly related to the vitality of the domestic market and consumer confidence.
The growth of domestic demand has not yet reached the expected level, especially in the key sector of real estate. Real estate is not only an important part of domestic demand, but also a key factor in driving the development of related industrial chains, including home appliances, furniture and decoration industries.
In addition, supporting small and medium-sized enterprises is key. Small and medium-sized enterprises (SMEs) are large employers of employment, providing a large number of employment opportunities and are the cornerstone of social stability.
The government has helped these companies tide over the difficulties, stabilized employment, and indirectly boosted consumption growth through tax reductions, financial subsidies, and technical support. In fact, the stability of employment and the improvement of consumer confidence have further contributed to the vitality of the domestic demand market.
In the context of the changing global economic environment, the performance of China's foreign trade is particularly eye-catching. Although facing many challenges, including international trade frictions and fluctuations in raw material prices, Chinese companies have demonstrated strong resilience.
In the case of electronics, Chinese companies have managed to maintain steady growth in exports by innovating and optimizing their product lines, despite the fluctuating global market demand.
In addition to traditional fiscal and monetary policies, there are also supportive policies for specific industries, such as high-tech industries and green energy. These policies, aimed at promoting industrial upgrading and sustainable development, have further strengthened China's position in the global supply chain.