00:00Zhou Mi is Senior Research Fellow at the Chinese Academy of International Trade and Economic Cooperation.
00:06Thanks so much for joining us.
00:07So why has China delivered stronger-than-expected April trade data?
00:15Well, I'm understanding that the trade is becoming very strong
00:18because China is getting more confidence from our trading partners
00:23and China's promises on the opening up of our market
00:27and also trying to lower the cost of doing business with the Chinese market
00:31are really giving a lot of confidence for our trading partners.
00:35Well, at the same time, we are seeing that so many uncertainties happening
00:39in the United States and other regions,
00:41which has posed many threats on the stabilities of the global supply chain.
00:47So by the contrary, I would say that many people are really thinking
00:51that China is providing more certainty
00:53and they want to be supported by the connection with China
00:56and not only from the export, but also from the import
01:00because China's market is very strong.
01:02So all these factors combined to give a very strong support
01:07for the trade performance for the April trade of China's import and exports.
01:13If we focus on exports, we know that this is a time of tariffs imposed by the United States,
01:20that this has been a difficult time for exports more generally.
01:23So what is the main driver behind this boost in exports from China?
01:29Well, export really account for, you know, China's manufacturing capacities.
01:34I think that it's a very, very useful for people to think about the global supply chains reconstruction.
01:42And China has performed a very stable in the performance for the manufacturing,
01:48especially for the machineries and the electronics.
01:50So if you're looking at the data, the electronics and also some of the equipments,
01:56like for the vehicles are really getting a very strong momentum for the increase.
02:02I think many countries are really benefited from that
02:04because they really want to have a better industrialization.
02:07So they imported the parts from China, including the auto parts and other parts,
02:13as that is a very essential part of their manufacturing.
02:17And at the same time, China's also providing so many materials
02:21and also the, you know, the people's using for the homes.
02:24So the textiles, the shoes, and also the furnitures,
02:28many of these products are really giving a very strong support for the people
02:31to have, you know, abilities to fight against the inflation.
02:36So that is really what they really want to have from China.
02:39Imports have also grown really well.
02:42So what does that say about domestic demand in China?
02:47Well, China is promising that we want to open our market continuously.
02:53And in this regard, you can find that, especially this year,
02:56we are having many strengths to boosting the consumption here in China.
03:02And we're also going to boost the integration of the China's domestic market.
03:07So the Chinese market is really huge.
03:09It's not only about the quantity, but also about the diversification.
03:13So, you know, we have so many diversified demand for different kind of products.
03:17And in the same time, we reduced the tariffs from the import from Africa
03:24and also from other countries, many free trade agreements are taking into effect.
03:29So all this combined to have a very strong certainty to the world.
03:33And I think that is the reason why we're seeing the market of China
03:36is really an important place for many trading partners to try to pursue.
03:42And I think that Chinese companies are ready for this kind of cooperation.
03:46Do you believe this momentum will last?
03:49We are seeing a lot of geopolitical uncertainty.
03:52The Strait of Hormuz remains blocked.
03:53Oil prices remain elevated.
03:58Well, it's true that there are so many uncertainties and pressures
04:01for, you know, the global supply chains to re-constructure.
04:04But the understanding that the momentum could continue
04:08because there are several reasons.
04:10First of all, that China is really good at manufacturing
04:13and the capacity is stable.
04:15That is providing so many uncertainties,
04:18even if that the energy prices are fluctuating.
04:22And the second, I would say that China's companies are not just maintaining their position
04:27in the traditional parts of the manufacturing.
04:29They are doing more innovative investment
04:32and improving their abilities for the robots and the other new materials.
04:36And the third, I would say that Chinese government are coping with our partners in the different ways,
04:42like in the Belt and Road regions.
04:44And also from the Europe side, I would say that both sides are really good at trying to improve the
04:51relations.
04:52And that is giving many support for the trade
04:55and also for the enterprises to continue to have a better performance
04:59in the trade between China and our trading partners.
05:02All right. Thank you so much for speaking to us.
05:04That's Joe Mi from the Chinese Academy of International Trade and Economic Cooperation.
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