For the first four months of 2019, the total export and import value of trade in goods hit 9.51 trillion yuan ($1.37t) in China, and private businesses accounted for 41 percent of that total, at 3.9 trillion yuan ($563.6b), up 11 percent year-on-year, announced the General Administration of Customs of China
That share from private businesses has grown consistently since 2018. It was slightly below 40 percent for 2018 when businesses for the first time contributed over 50 percent to the increase in foreign trade, according to official data, yicai.com argued in an editorial.
And the quality of private businesses’ foreign trade is also improving, read the editorial. Minister of Commerce Zhong Shan made a similar case in March, noting private businesses are important exporters of automobiles, tool machines and electronics. More are nurturing new edges in competition through independent innovation.
Behind their increasing contribution to foreign trade is support from State policies, the flexible and efficient mechanisms of private businesses, and the stigma of State-owned enterprises amid external uncertainties that works to the advantage of private businesses, according to the editorial.
This makes it critical to further involve private businesses in China's efforts to stabilize foreign trade, the editorial suggested. The State needs to create a favorable environment and help develop a team of influential foreign traders and multinational businesses.
However, despite the golden period ushered in by a series of favorable policies, private businesses – especially large ones – still face development bottlenecks such as financing, read the editorial. The State should recognize their important role in foreign trade and help resolve these issues.
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