The imports and exports by Chinese private enterprises increased 6.7 percent year-on-year in the first seven months of 2023, illustrating a bright spot in China’s overall foreign trade that faced downward pressure, official customs data showed on Tuesday, as the country continues to take concrete measures to back up the private sector.
From January to July, total exports and imports by the private companies reached 12.46 trillion yuan, up 6.7 percent year-on-year, according to the data released by the General Administration of Customs (GAC). That growth rate is significantly higher than the 0.4 percent year-on-year growth rate in China’s foreign trade for the same period.
Notably, the share of private firms’ exports and imports in the country’s total foreign trade rose to 52.9 percent, further highlighting the increased role of the private sector in China’s overall economic development.
In 2022, foreign trade volume for the private sector reached 21.4 trillion yuan, surpassing half of China’s goods trade for the first time, making private firms a main force for stable growth of foreign trade. The momentum is being sustained, boosted by the flourishing development of China’s private economy.
In the first seven months of 2023, the growth rate of private sectors’ imports and exports was higher than the overall growth rate.
And, more private firms are participating in foreign trade. In the first seven months, the number reached 478,000, an increase of 36,000 firms compared to the same period last year. Supported by the government’s policies to reinforce the private economy, the sector is able to scale new heights, and the international competitiveness of Chinese private firms will further increase, said Lü Daliang, chief of department of statistics and analysis of GAC.
Chinese government’s policy support has helped private companies to thrive. On Sunday, the State Taxation Administration of China announced 28 measures to facilitate tax payments and promote the development of the private sector, with a focus on supporting small and medium-sized enterprises (SMEs) and individual businesses.
The measures extend the duration of preferential tax exemptions and reductions, ensure that the benefits of tax reductions reach enterprises directly. The tax authority also stated that they would work with relevant departments to help eligible SMEs to fully enjoy policy benefits.
On Friday, several Chinese government agencies and China’s central bank noted that they will take more targeted policy actions to bolster the country’s economic recovery. Policies covering six aspects, including reducing enterprises’ burdens, improving the business environment and stabilizing foreign trade, will put into implementation, according to Yuan Da, a deputy secretary-general of the National Development and Reform Commission.
(Global Times)
