China’s new trade strategy seeks to build on export boom amid fresh coronavirus lockdowns in the West
- Push to expedite trade agreements comes as Chinese factories are running at full capacity due to demand for medical and work-from-home supplies in virus-hit countries
- But analysts warn that Beijing’s new game plan may not succeed until China takes major steps to open up its economy and reduce restrictions on capital flows
Building on China’s success in getting its economy back up and running after the coronavirus pandemic, the government will push ahead with plans to create more secure trade links with other countries in response to the United States’ ongoing attempts to economically decouple the world’s two largest economies.
The new trade strategy, released this week by the State Council, the government cabinet, does not mention the United States directly, but its strong focus on expediting new trade agreements with other countries and cultivating conditions to tap into new foreign markets underscores Beijing’s growing preoccupation with realigning its economic sphere of influence because of the increasing rivalry with Washington.
“[China should] accelerate the set-up of international market penetration,” said the statement from the State Council on Monday. “Additionally, [it should] cultivate new strengths for international cooperation and competition under the new circumstances.”
In the meantime, Chinese trade looks to capitalise on the resurgence of the coronavirus in the US and Europe, such as by increasing demand for medical supplies that Chinese companies produce. This point was emphasised at a media briefing on Thursday by Ren Hongbin, assistant minister with China’s Ministry of Commerce, who was discussing the new trade strategy.