PANDEMIC IMPACTED CHINA'S FOREIGN TRADE BUT IN LIMITED WAYS

Writer： admin Time：2020-05-21 17:24 Browse：

The sudden outbreak of covid-19 has added to the downward pressure on the domestic economy. How will the epidemic affect China's economy? What measures can China take to reduce the economic impact of the pandemic?

Since the outbreak of covid-19, China has faced major challenges in stabilizing its foreign trade due to delayed factory jobs, logistics delays and restrictions on the movement of people and goods in some countries and regions.

Now that China has achieved initial success in pandemic prevention and control, the impact of the pandemic on China's foreign trade will be temporary and limited as enterprises in different industries and regions resume work one after another.

This judgment is mainly based on the following three reasons:

 First, from the perspective of time nodes, the first quarter itself is a weak season for foreign demand as the Christmas and New Year shopping season in western countries has just passed. Meanwhile, the first quarter coincided with the Chinese New Year holiday. Therefore, from the historical export data, the growth rate in the first quarter is low.

Second, in the short term, the transfer of orders may not happen. Although China's foreign trade enterprises are facing now start delay, difficult dilemma of delivery on time, but as a result of suppliers in other countries it is difficult to quickly increase production capacity in the short term, as long as the relevant enterprises to maintain good customer relationship in a short time, do not produce irreversible transfer orders, once the outbreak of the past production recovery, in the first quarter loss of orders can be fixed.

Third, as a severe epidemic area, Hubei province's foreign trade enterprises suffered the most. However, due to the low proportion of hubei's foreign trade in China's foreign trade (1.25% in 2019), the impact on China's foreign trade will not be too great.

At present, the basic economic conditions at home and abroad on which foreign trade depends for its development have undergone fundamental changes. The competitive advantage in foreign trade must be driven by cost and price driven by factors and transformed into comprehensive competitive advantage driven by innovation. Technology, brand, quality, service and standard have become the core elements of competition. China has a population of 1.4 billion of the big market, supporting the development of the digital economy of the world's leading ICT enterprises and digital platform, has the world's most hard-working and the desire for a better life, several times the working people in science and engineering students and engineers in the United States, the world's most efficient infrastructure and the most complete industrial system, these fundamentals is consolidated and create the basic source of competitive advantage of foreign trade.