Gu Xueming, a top Chinese trade analyst, says that rather than being indicators of a decline in global commerce, the accumulation of empty containers at Chinese ports and decreasing ocean shipping prices should be viewed as positive signs, as reported by Xinde Marine.
Exports increased
Gu, who is the director of the Chinese Academy of International Trade and Economic Cooperation (CAITEC), a think tank connected to the Ministry of Commerce, stated that 2023 will be a crucial year for China’s overseas trade.
According to data from the General Administration of Customs (GAC) released on Tuesday, China’s exports of goods increased by 0.9% to 3.5 trillion yuan (about 506.10 billion dollars) in the first two months of 2023.
Gu commented on the empty containers, which some spectators saw unfavourably, and claimed that freight corporations were mostly to blame for the move.
Container scarcity
“Unused containers are clogging ports as a result of an oversupply following a container scarcity in 2021. Foreign trade companies have taken a proactive deployment because they are optimistic about the prospects for China’s international trade recovery “In a conversation with China Central Television, Gu said (CCTV).
He asserted that over the past three years, importers and exporters have experienced difficulties as a result of growing container shipping rates, which peaked in 2022.
“In addition to the buildup of empty containers at ports and the decline in container freight prices, there are additional indications of the expanding trend of global trade. They demand a dialectical viewpoint. As the marine transportation market stabilises, the price of shipping containers is now declining. Given that freight rates are returning to normal, this is to be expected. Thus, these figures do not point to a decline in China’s global trade, “Gu remarked.
Expanding commercial links
China has been expanding its commercial links in recent years, and Gu noted that exports to emerging nations have replaced exports to conventional markets as the new growth engine for China’s international commerce.
Opportunities and challenges will coexist in China’s international trade in 2023. The International Monetary Fund (IMF) forecasts a 2.9% slowdown in global GDP growth. The World Trade Organization (WTO) anticipates a 1% growth in global commerce in products. Both numbers are lower than they were the previous year, which paints a bleak picture of the future of international trade.
China does, however, have a rather complete industrial and supply network. “I believe that overall, China’s development of its foreign trade, which is supported by a solid foundation with many selling points and a wide market reach, will likely achieve stable growth with the booming digital trade industry, full implementation of the “Belt and Road Initiatives,” and the Regional Comprehensive Economic Partnership Agreement (RCEP),” said Gu.
Gu is one of the 2,172 CPPCC members present at the ongoing “Two Sessions,” a significant occasion in the Chinese political calendar that refers to the annual gatherings of the CPPCC and the National People’s Congress (NPC), the country’s top legislative and political advisory bodies.
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Source: Xinde Marine
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