Export Situation Is Grim And Foreign Trade Policy Will Be Adjusted.

According to data released by the General Administration of Customs on 11, China's trade surplus in February was US $4 billion 841 million, a sharp drop of US $34 billion 259 million compared with January, a decrease of 87.62 in the annulus.

In February, the total value of China's foreign trade imports and exports was 124 billion 950 million US dollars, down 24.9% from the same period last year.

Of which, exports of 64 billion 900 million US dollars, down 25.7%, imports 60 billion 50 million US dollars, down 24.1%.

Export decline in February was 8.2 percentage points faster than last month, setting the biggest decline since available statistics (1995).

Imports fell by 19 percentage points over the previous month.

According to customs statistics, foreign investment enterprises are still in the leading position in China's import and export, and the decline in import and export volume of collective, private enterprises and other enterprises is less than 11 percentage points.

In the first 2 months of this year, foreign investment enterprises imported and exported 146 billion 350 million US dollars, down 28.4%, accounting for 54.9% of China's total import and export value in the same period.

Over the same period, imports and exports of state-owned enterprises decreased by 33.2%, accounting for 22.4% of China's total import and export value in the same period of 59 billion 750 million.

In addition, the total volume of imports and exports of collective, private enterprises and other enterprises decreased by 16.2%, less than 11 percentage points in the same period of the same period of foreign trade. The total import and export volume decreased by 16.2%.

Although data have been observed over the past few years, the trade surplus has experienced a sharp fall in the first quarter of the year, and then will return to normal level.

However, analysts believe that the backdrop of the trade surplus in February this year is a sharp drop in export growth, leaving many institutions with a big surprise.

Exports fell 25.7% in the same month, down 28% compared with January this year, reflecting that exports are still in a downward path.

Wei Jianguo, Vice Minister of the National Committee of the Chinese people's Political Consultative Conference (CPPCC) and the former Vice Minister of the Ministry of Commerce, said that the large import contraction is more worrying than the export reduction, because the import is the future export. The big drop in imports means that the import of raw materials of domestic enterprises has fallen, the investment and production still have not been restored to Ying Youshui, and the enterprises do not have confidence in the future situation, do not dare to receive orders and do not carry out production, and the export situation will be more severe in the next few months.

In addition, the huge trade surplus under the sharp decline of exports shows that domestic demand is still weak and domestic economic recovery is weak.

Experts pointed out that the grim situation of foreign trade further shows the importance of China's domestic demand and the importance of domestic consumption and investment. Although the prospect of domestic demand is broad, it needs a process.

Experts say that the government may further adjust its foreign trade policy if external demand continues to deteriorate.

Zhu Jianfang, chief macroeconomic analyst at CITIC Securities, pointed out that these policies include further raising the export tax rebate rate, expanding the scale of export credit, providing financing for small and medium-sized export enterprises, restoring some of the original restrictions and prohibiting the processing trade.

Some sources also said that the government may continue to cut export related tax rates to zero and reduce or cancel export taxes on some raw materials and agricultural products.

In the two sessions, there were even suggestions: further increase the export tax rebate rate for textiles and other products.

Li Rucheng, chairman of the National People's Congress and Limited by Share Ltd chairman of YOUNGOR group, put forward the proposal to adjust the export tax rebate rate of textile and clothing to 17%.

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