As the impacts of the novel coronavirus disease （COVID-19） gradually ease in China， the tide is turning for foreign trade， with production rebounding and work resumption accelerating in recent months. According to data released by the General Administration of Customs of China （GACC）， foreign trade in goods totaled 25.95 trillion yuan （$3.91 trillion） in the first 10 months of the year. This represented a year-on-year increase of 1.1 percent， compared with 0.7 percent in the first three quarters.
　　The recovery was the result of a portfolio of new measures to support foreign trade firms， including enhanced credit services， simplified customs clearance procedures for cross-border e-commerce imports and exports， and eased market access for foreign investment.
　　Many foreign trade enterprises， especially small and medium-sized ones， were hampered by a shortage of funds. In response， the Ministry of Commerce has increased the export tax refund rate for 1，464 products. Li Xingqian， Director of the Foreign Trade Department at the ministry， told a press conference in early November that the resulting reduction in opera- tion costs has benefited around 25，000 enterprises.
　　In order to drive up exports， GACC established 10 cross-border business-tobusiness （B2B） export supervision pilot zones on July 1， integrating customs operations for B2B exports of goods. In September， 12 more such zones were inaugurated.

Overall growth

　　GACC data showed that general trade， trading in goods by companies with licenses to import and export， went up 2.8 percent to 15.6 trillion yuan （$2.35 trillion） in the first 10 months of the year， contributing to around 60 percent of the overall trade volume. Imports and exports of private companies expanded 10.5 percent to 12 trillion yuan （$1.8 trillion）， accounting for 46.2 percent of the national total， up 4 percentage points compared with the previous year.
　　The Association of Southeast Asian Nations remained China’s largest trading partner during the period， followed by the EU and the United States.
　　According to Assistant Minister of Commerce Ren Hongbin， COVID-19 prevention and control supplies and essential consumer products for lockdown life boosted China’s exports in the fi rst 10 months. Although auto exports slipped 6.7 percent in the January-October period， the export volume of mechanical and electrical products reached 8.45 trillion yuan （$1.2 trillion）， up 3.8 percent. Textile exports including masks also rose 34.8 percent. 　　In the first 10 months， imports and exports of foreign-funded firms reached 10.02 trillion yuan （$1.51 trillion）， accounting for 38.6 percent of the overall trade volume.
　　The recovery of business activities also shored up imports. On November 3， the government announced the establishment of 10 demonstration zones with more fl exible regulatory systems and trade modes to boost imports.
　　Cross-border e-commerce helped foreign trade companies expand their consumer base at home and abroad. Imports and exports through the cross-border e-commerce management platform of the Customs reached 187.39 billion yuan（$28.03 billion） in the fi rst three quarters， a year-on-year increase of 52.8 percent.
　　On November 9， the State Council released a set of guidelines on the innovative development of foreign trade.
　　The guidelines encourage enterprises to tap into the global market in order to better meet domestic demand， stressing that efforts are needed to raise the competitiveness of foreign trade fi rms through innovative technologies， rules and business modes. They also specify measures including applying technologies to integrate online and offl ine business expos， improving rules to facilitate imports and exports of key products， boosting pilot free trade zones and ports， driving cross-border ecommerce through increasing pilot zones and overseas warehouses， and improving services.
　　According to the document， it is essential to enhance trade quality in the eastern region， improve the proportion of trade in the central and western regions， and expand opening up of the northeastern region for further interregional cooperation.

　　Ren told a press conference in Beijing on November 12 that besides boosting the business of foreign trade enterprises， the measures will also offer them more policy support， make the domestic business environment more favorable and provide more opportunities for enterprises.

Transformation needed

　　Although China’s foreign trade has rebounded， it still faces challenges. These include sluggish global demand due to the spread of the pandemic， disruption to industrial chains and trade protectionism， Ren said， stressing that the potential of the domestic market needs to be given greater play.
　　Many foreign trade enterprises have already turned to explore the domestic market and develop e-commerce channels. In June， the State Council gave a push to their transformation by easing market access， expanding sales channels and improving financial assistance to reduce external uncertainties. Activities were also held during online shopping festivals and major trade fairs to help enterprises promote their brands and integrate online and offline sales. Li said that over 40 percent of the foreign trade enterprises surveyed， totaling around 4，000， have begun to sell export products in the domestic market.

　　On October 20， daily sales of household appliances manufactured in Shunde， a major export hub of such products in Guangdong Province in south China， exceeded 1.3 million yuan （$195，800） on a live-streaming shopping platform in the city. Wen Bin， chief analyst at China Minsheng Bank， told Beijing Review that export-oriented enterprises also have promising prospects at home.
　　“High-quality products of these companies can meet the new demand arising from consumption upgrading. Since rising costs of labor and energy in China have been driving industrial transfer， enterprises are supposed to closely follow changes to industrial chains to avoid disruptions to production，” he said.
　　Although the recent renminbi appreciation has put pressure on export-oriented enterprises， it can mainly be attributed to the changes to the international balance of payments driven by trade growth and capital inflow after China’s economic growth has rebounded， Wen said. He suggested that foreign trade enterprises could fend off currency appreciation pressures through locking in the exchange rate in advance.
　　The State Council guidelines highlight cross-border e-commerce as a key driving force of innovative foreign trade， saying it can be further expanded in terms of geographical and business coverage.
　　Qu Wuxi， Vice President of the Chinese Academy of International Trade and Economic Cooperation， told People’s Daily Online that cross-border e-commerce businesses are mainly clustered in Guangdong and Zhejiang Province in the east， accounting for more than 70 percent of the total in the country. However， since the sector still focuses on selling goods to individual consumers， its contribution to the rise of imports and exports is still low compared with other industries.
　　“The government needs to further develop cross-border B2B e-commerce and make full use of new technologies to meet customized and personalized demands，”Qu said.