How China is rethinking export-led growth as global trade walls rise
Protectionism is forcing a shift towards balancing exports with outbound investment, analysts say
“Commercial authorities at all levels ... should guide the reasonable and orderly cross-border layout of industrial and supply chains, promote integrated development of trade and investment... and effectively strengthen outbound investment management,” the Ministry of Commerce said on Tuesday.
The pledge was delivered at the ministry’s annual conference on outbound investment, international cooperation and foreign aid.
For the first time in two years, the agenda placed emphasis on both trade and investment – a signal analysts linked to Beijing’s efforts to sustain strong commercial ties with global partners beyond exports.
“I see this as a recognition from Beijing that the old export-led growth model faces diminishing returns in a protectionist global environment,” said Alfredo Montufar-Helu, the China-based managing director at Ankura Consulting.
“The push for trade-investment integration is really a call to establish capacity overseas to circumvent tariffs and ensure continued market access, while also generating demand for Chinese intermediate goods exports and other inputs that are necessary for manufacturing final products.”