China introduced new measures on Thursday aimed at bolstering foreign trade, as Beijing seeks to counter a slowing economy further threatened by the potential policies of incoming U.S. president Donald Trump.
China unveils new measures to boost foreign trade
The World’s second-largest economy has faced persistent challenges since the COVID-19 pandemic, including a severe debt crisis in the housing sector, weak consumer spending, and high youth unemployment. Concerns have grown over the prospect of renewed tensions with the U.S., as Trump, during his first term, imposed tariffs on Chinese imports, sparking a broad trade war.
In a notice issued Thursday, China’s commerce ministry directed all levels of government to immediately implement nine policies designed to "promote the stable growth of foreign trade and strengthen the economy’s recovery momentum."
Key measures include expanding export credit insurance, providing stronger financing support for foreign firms, and streamlining cross-border trade settlements. The plan also emphasizes advancing cross-border e-commerce, boosting exports of specialty agricultural products, and enhancing imports of essential equipment, energy resources, and other strategic goods.
Additional initiatives focus on fostering "green trade," increasing cross-border personnel exchanges, and improving shipping and employment conditions for foreign enterprises. Provincial and local governments were instructed to monitor foreign trade trends closely, analyze economic changes, and offer robust support to sustain recovery.
US-China relationship under Trump
During his first term, Trump engaged in a contentious trade conflict with China, imposing tariffs on billions of dollars’ worth of Chinese goods, which led to retaliatory measures from Beijing.
China has not commented on the likelihood of a more aggressive trade stance from Trump but appears to be bracing for potential challenges. President Xi Jinping recently told U.S. President Joe Biden that Beijing seeks to "ensure a smooth transition" in bilateral relations and expressed willingness to work with the Trump administration moving forward.
