Since the introduction of its reform and opening-up policy, China has continued to achieve tremendous economic development, becoming the second largest economy in the world against all odds.
Nothing has stopped its solid journey of becoming a global economic engine and factory because of its pragmatic economic strategies and plans.
China stunned the world by staging a miraculous and almost unthinkable turnaround in the devastating impact of the COVID-19 pandemic on its economy as well as its public health. It is the only major country in the world to post positive economic growth in 2020.
The country has proven itself in the management of the economic crisis by ensuring a strong growth of its foreign trade, in terms of exports and imports, in the first quarter of this year.
Foreign trade grew 29.2% year-on-year to 8.47 trillion yuan ($ 1.29 trillion). Exports soared 38.7% on an annual basis to 4.61 trillion yuan, while its imports jumped 19.3% year-on-year to 3.86 trillion yuan, according to the latest data released by the ‘General customs administration of the country.
It is a manifestation of China’s continued openness efforts which have indeed become the main engine of its robust growth in foreign trade and overall economic development. With its commitment to become ever more open, China has adopted a series of policies aimed at promoting high-level liberalization and facilitation of trade and investment, such as establishing free trade zones, holding exhibitions to imports, the reduction of barriers to entry of foreign capital, as well as the promotion of trade negotiations.
All of them have greatly facilitated market access and contributed to its goal of forming global networks of trade, investment and finance, production and services, in order to promote international economic cooperation.
Free trade areas emphasize the importance of advanced systems rather than preferential policies. China has introduced special tax incentives for foreign investment in the zones. It granted greater independence to international business activities.
They attract and use foreign capital through joint ventures and partnerships as well as wholly foreign-owned enterprises. Export-oriented products and goods are produced, resulting in positive growth in exports and foreign direct investment.
So far, China has established 12 major free trade zones. They employ 4% of the total workforce and handle goods representing around 17% of total Chinese imports. About half of these goods are for domestic consumption and half for re-export.
Electronics and the machines that run through them account for 20% of imports in their respective sectors, while transport products account for 25% of imports in that particular sector, according to the European Central Bank.
Following the principle of win-win cooperation, the Belt and Road Initiative has also helped develop China’s foreign trade and promote trade cooperation with other countries. In the first quarter, China’s total trade with BIS countries increased 21.4% to 2.5 trillion yuan.
Bangladesh is one of the active and important participants in the initiative. It has not obtained any tariffs on 97% of its goods exported to China since last year. A total of 8,256 Bangladeshi products are so far exempt.
Other measures, such as holding an import exhibition, reducing barriers to entry for foreign capital, trade negotiations and regional and multilateral trade negotiations have resulted in deepening of bilateral and multilateral economic and trade commitments. of China with the rest of the world.
China’s economic and trade commitments with other countries resulted in significant growth in the first quarter of 2021. Official data shows that its exports to the European Union increased 36.4% year-on-year. other and exports to the United States jumped 61.3%.
As China has entered a new era of development, its efforts to promote greater openness will help it establish better connections with the rest of the world and allow China to share more opportunities for win-win cooperation. with other countries, thus promoting a global economy. growth and prosperity.