China to roll out trade support amid ‘increasing pressure’ behind the scenes
- Beijing has promised new policies to stabilise trade, including credit support for small firms and help diversifying markets
- Exporters face high raw materials prices and shipping fees, and more competition as other economies recover from Covid-19
China has no reason to be “blindly optimistic” about trade amid increasing headwinds, the country’s vice commerce minister has said, in the latest warning from Beijing about challenges facing the world’s No 2 economy.
“Behind the scenes of China’s rapid growth in trade, we must be clear that many trade companies, especially small firms, are facing increasing pressure and difficulties,” Ren Hongbin told a press conference on Wednesday.
“It is common for them not to take orders and they are seeing profits rise less.”
The central government will introduce new policies to keep trade stable, including greater credit support and help to diversify markets for exporters, Ren said.
A significant slowdown in export growth could be a real game changer, possibly dealing a heavy blow to the economy
The minister’s comments, the latest in a string of cautious economic announcements by Beijing, come as expectations grow of a deeper deceleration in China’s economic growth rate during the final three months of the year.