On Wednesday, China's Commerce Ministry asserted that the increasing influence of non-economic elements is interfering with trade. A representative from the ministry, speaking in Mandarin, declared that certain countries have been using trade to advance their political aspirations, resulting in businesses having to alter their production and orders, and thus damaging both sellers and buyers economically. The ministry further added that its head had met with 20 international corporation leaders so far this year.
China's Commerce Ministry declared Wednesday that external trade was facing an "extremely grave" situation in the second half of 2021 due to the increase of non-economic elements. Li Xingqian, head of the ministry's external trade department, stated at a press conference about the ministry's performance in the first half of the year that some countries are forcefully pushing for "decoupling," "severing [supply] chains," and "de-risking," which are human-made obstructions impeding normal trade operations. In the past few months, China's exports, an important contributor of domestic growth, have lowered significantly because of the slow global economy. Additionally, Li observed the general economic decrease and suggested that since trade had augmented during the three years of the Covid-19 pandemic, it established a high baseline for this year's results.
Li also mentioned the increasing politicization of trade, which has caused orders and production to be displaced, following unfavorable outcomes for both suppliers and buyers. He added that the ministry would provide assistance to businesses affected by "unreasonable trade restrictions". This statement does not include any comments on China’s own impending export controls, which are due to take effect on August 1st. The US has also imposed its own limitations in an attempt to restrain China’s advancements in high-end technology. The escalating trade tensions amongst these countries have resulted in other nations intervening as well. China, however, is seeking to maintain and attract foreign investment. A variety of influential business figures, including Tim Cook and Elon Musk, have visited the country post-border restriction de-escalation. The Commerce Ministry revealed that its minister, Wang Wentao, has held conversations with 20+ foreign company leaders this year, intending to form regular discussion boards with foreign companies and handle operational matters. Alike to that, the department plans to make alterations to allow foreign investors to expand their strategic investments in China's listed firms.
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