City’s imports and exports grow 3.4% YoY in H1
2019-07-31 Source:Hangzhou China

Hardware tool maker Hangzhou Great Star Industrial announced its H1 earnings forecast recently. Its net income attributing to shareholders grew 30%-50% in the first six months of 2019. 

Great Star’s strong growth amid global headwinds is a good example of the foreign trade rebound of the city’s companies and their tenacity in the adversarial environment. Their continuous structural and value chain upgrading have contributed to the city’s trend towards high-quality development. 

The city’s imports and exports grew by 3.4% YoY to CNY 254 billion in H1. The exports rose 3.5% to CNY 165 billion and accounted for 15.7% of the province’s total. The imports grew by 3.3% to CNY 88.9 billion, accounting for 24.7%.

“Gold content” of foreign trade increases, “Belt and Road Initiative” boosts growth

The city’s half-year foreign trade report reflects its continuous efforts. The call for new normal growth, greater efforts in high-tech development, revitalization of physical economy, proactive involvement of the “Belt and Road Initiative” and market diversification have advanced the city in global industrial chain and value chain, providing the city courage and strength to grow amid headwinds. 

The city’s exports grew 3.1% YoY in Q1 and 3.8% in Q2. In H1, exports of mechanical and electrical products and high-tech products grew 4.8% and 10.1% respectively, to CNY 71.5 billion and CNY 26.7 billion. The foreign trade structure has been further optimized.

Meanwhile, more diversified means of trade and the growth of new industries have driven the city’s open economy. In H1, foreign trade via processing trade and bonded logistics were active, generating imports and exports of CNY 31.18 billion and CNY 3.48 billion respectively, up 10.6% and 25.3%. Cross-border e-commerce has also seen steady growth, generating imports and exports of CNY 5.41 billion, up 13.6%; the exports grew  260% to CNY 510 million, accounting for 93.1% of the province's total.

In addition, the "Belt and Road Initiative" has increasingly become a driver for the companies global expansion. Customs data show that in H1, the city’s imports and exports with the countries that have participated in the initiative grew 6% to CNY 79.25 billion. The exports grew 7.1% to CNY 54.0 billion, which is 3.6 percentage points higher than the average growth rate of the city's exports and contributed 64.4% to the city's export growth.

Responding to trade frictions with accuracy to support companies’ steady growth

It’s undeniable that the complicated and capricious international economic and trade situations have destabilized the city’s foreign trade growth. The cities’ companies, however, are working hard to improve his strength to expand their market presence. The government has also been proactive to fix problems and implemented a series of precise policies to deal with trade frictions, securing their steady growth and overseas expansion.

The commerce departments have organized foreign trade training for nearly 1,000 companies to improve their practical skills since the beginning of this year. The companies are timely cautioned about risks and receive training in this respect. The government units also invited lawyers to help them deal with litigation and protect their rights overseas. Besides, government policies were interpreted in details and promoted in public to guide the companies when tackling trade frictions and have them less affected.

Moreover, the city’s commerce bureau has also facilitated the companies’ attending international exhibitions and conventions, including the East China Fair, Canton Fair,  and International Consumer Goods Fair as well as the city’s promotions in Turkey, Poland, and Mexico, to diversify their clients and markets and increase their influence overseas. The “Belt and Road Initiative” has also boosted their ties with more emerging markets, which adds to the companies’ confidence amid trade frictions. 

The city has also stepped up international cooperation on production capacity by supporting the sectors that have seen projects were transferred abroad due to trade frictions and the projects that have moved into the city's overseas economic and trade cooperation zones. The government will speed up the construction of the city's overseas industrial parks, guide enterprises to open branches, and help them expand overseas, by providing more efficient administrative approval services, hosting meetings to introduce companies to overseas industrial parks, holding round table meetings for overseas investment service, and strengthening cooperation with overseas countries, especially with the foreign institutions of the countries that have joined the "Belt and Road Initiative” in China.

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