General

Since the report of the 20th National Congress of the Communist Party of China proposed "Accelerating the Construction of a Trade Power", China has continuously introduced relevant policies and measures to promote the high-quality development of international trade and accelerate the pace of China's march from a trade power to a trade power. Therefore, taking the initiative to enhance China's ability to resist fluctuations in foreign trade is the essence of the topic, which will release China's confidence in stabilizing the economy and promoting development to the global market, and provide a strong guarantee for accelerating the construction of a new development pattern.

Improving the ability of foreign trade to resist fluctuations aims to maintain the import and export volume or growth rate of international trade within a reasonable and predictable range over a long period of time. Even in extreme situations, multiple measures can be taken simultaneously to avoid sharp fluctuations in relevant indicators as much as possible.

In the long run, improving the ability to resist fluctuations in foreign trade is conducive to continuously enhancing the confidence of China's foreign trade entities. Over the past 45 years of reform and opening up, China's foreign trade development has made tremendous achievements. China has remained the world's largest country in goods trade, and its foreign trade base continues to increase. However, the economic development of any country cannot be linearly upgraded. Perhaps in the future, China's foreign trade will also usher in a period of medium to low growth. On a large base, small fluctuations in foreign trade data reflect specific changes in the performance of millions of business entities, which will further react on business entities and affect their confidence.

In the short term, China's current foreign trade development environment has undergone complex changes. Whether it is geopolitical games, anti globalization thoughts, trade protectionism, or the Russia-Ukraine conflict, the COVID-19, high global inflation, and the collapse of Silicon Valley banks, it will bring more uncertainty and instability to the development of foreign trade.

Fortunately, China's foreign trade development has a strong foundation. This confidence stems from China's strong industrial foundation, complete industrial support, large market size, diverse trading partners, innovative trading methods, rich trading entities, and effective support policies. As long as it is based on this, improving the ability of foreign trade to resist fluctuations is a matter of course. Overall, improving the ability of foreign trade to resist fluctuations is to focus on doing one's own thing well, and the key lies in the word "initiative". Let's start with the following four points:

First, optimize the overseas layout of the industrial chain and strive to increase the added value of export products. With the development of the global trade pattern, the structure of goods trade has undergone tremendous changes, and the proportion of intermediate goods trade has gradually increased. Currently, more than 70% of international trade is intermediate goods trade. Against this background, it is necessary to promote the development of foreign trade from "going global" in products to "going global" in the industrial chain, and encourage leading enterprises in the industrial chain to deploy assembly plants to target markets and surrounding areas. While meeting local market demand and driving local employment, it is also necessary to stimulate the export of intermediate products with high technological content and added value, driving China's specialized, specialized, and new enterprises to better explore the international market. Especially in the current era of rising trade protectionism and treacherous international political disputes, there is a trend of nearshore and friendly restructuring of industrial chains and supply chains. We attach importance to optimizing the layout of industrial chains to better help foreign trade enterprises avoid various trade barriers, thereby stabilizing international trade exports and improving the added value of exported products.

Second, accelerate the smooth domestic circulation and continue to assist in the integrated development of domestic and foreign trade. As China's opening up to the outside world continues to move towards a wider range, wider fields, and deeper level, enterprises are facing international competition whether they go abroad or not. The integration of foreign trade within foreign trade enterprises will become the path to maintain competitiveness. In addition, it is also necessary to further strengthen the relationship between China and its trading partners by promoting imports, laying a solid foundation for building a strong trading country. From the perspective of the development process of foreign trade in developed countries, large exporting countries may not necessarily be trading powers, but large importing countries must be trading powers. Firstly, a large amount of foreign exchange required for imports comes from high value-added export products and services; Secondly, the importer not only has the right to speak, but also needs a huge market scale to support it. From this perspective, whether it is the integration of domestic and foreign trade or the promotion of imports, a smooth domestic circulation is an indispensable and important condition. To this end, the government needs to prioritize expanding domestic demand, promote common prosperity, accelerate the construction of a unified national market, continuously expand the scale of the consumer market, improve consumption levels, and create a good domestic market environment for the development of foreign trade enterprises.

Third, promote the diversification of trade channels and effectively ensure the smooth flow of the supply chain industry chain. This requires further promoting the high-quality development of land trade and transportation modes such as the China Europe Express and the Western New Land Sea Passage. On the one hand, as China's economic and trade ties with countries and regions along the "the Belt and Road" are becoming closer and closer, and the industrial division of labor is deepening, the China Europe Express and the new land sea channel in the west will not only reduce the transportation costs of China and countries and regions along the "the Belt and Road", but also avoid the uncertainty risks brought by maritime transportation; On the other hand, railway transportation modes such as the China Europe Express can maximize the "door to door" layout from factories (parks, warehouses) to factories (parks, warehouses), reaching the end of the market, and more closely matching the development of new foreign trade models and business forms such as cross-border e-commerce. This can give better play to the advantages of Chinese foreign trade enterprises, improve their voice while ensuring the smooth flow of the supply chain industry chain.

Fourth, steadily expand institutional opening up and continuously release new dividends from high-level opening up. This requires us to implement WTO rules with high quality throughout the country, implement RCEP with high quality, and take the lead in high-quality benchmarking of high standard international economic and trade rules such as CAI, CPTPP, and DEPA in the pilot free trade zone. These high standard international economic and trade rules not only include trade in goods and investment, but also involve opening up to the service industry. In the current era of emerging new technologies, China's initiative to expand the opening up of the service industry and promote the development of service trade will enable better technology to empower our products and services, improve their international competitiveness, thereby forming a mutually reinforcing development pattern of service trade and goods trade, driving the high-quality development of our foreign trade.

The advantage of China's foreign trade development is formed in the long-term international trade competition, and the long-term trend of foreign trade development will not change. This is a reflection of China's comprehensive strength. We believe that under the strong leadership of the Party Central Committee and the joint efforts of the government, enterprises, trade promotion agencies, business associations, and other foreign trade participants, China's foreign trade volatility resistance will continue to improve, and the goal of high-quality development of China's foreign trade and building a strong trade country will be achieved.