Shanghai Securities News: 

We noticed that the growth rate of China's foreign trade slowed down significantly in 2023. I would like to ask, what's your opinion on China's export last year? How do you see China's export this year? What are your expectations in this regard? Thank you.

Wang Lingjun:

The achievements in exports last year were hard-won. It's fair to say that China's export fared well last year. Mr. Lyu will answer this question.

Lyu Daliang:

Thank you for your questions. Mr. Wang has introduced the general situation of China's foreign trade. I will elaborate on the country's exports performance.

Over the past year, the world economic recovery remained feeble, the overall performance of global trade stayed sluggish, and the weakness of external demand had a direct impact on China's exports. Judging from figures, the growth rate of China's exports is lower than that of previous years. However, we should also notice that China's exports have reached a new high on a high base, not only achieving a reasonable growth in volume, but also maintaining overall stability. It also achieved a qualitative and effective improvement in terms of growth momentum and regional dynamics, demonstrating strong resilience and comprehensive competitiveness. Specifically, it can be characterized by the following four aspects.

First, China's share of global exports remains stable at a high level, and the competitive advantage of China's manufacturing stay solid. According to the latest statistics released by the World Trade Organization, the international market share of China's exports is expected to remain at a high level of about 14% in 2023. Market share is a key indicator of market competitiveness. China's share stayed stable in 2023. Figuratively speaking, the "cake" did not get smaller, and our overall competitiveness remains solid.

Second, the export of independent brands has significantly increased, and the global influence of Chinese brands has expanded. In 2023, the export of products from our country's independent brands grew by 9.3%, with their share in the total export value increasing by 1.7 percentage points. In terms of the market, Chinese brand products have been exported to more than 200 countries and regions worldwide. Chinese brands are now present in every corner of the world.

Third, significant progress has been made in building a modernized industrial system, and the proportion of exports from the equipment manufacturing industry has increased. In 2023, the export value of the equipment manufacturing industry, reflecting industrial support and integration capabilities, reached 13.47 trillion yuan, up 2.8%. Its share in China's total exports increased to 56.6%. Notably, our country's automotive and shipbuilding industries have shown strong momentum, with record-breaking automobile production and sales volumes. China holds a leading position worldwide in terms of the quantity of completed ships, quantity of newly accepted orders and quantity of already placed orders . The export of products related to this sector has increased by 66%, contributing to a 1.5 percentage points rise in the overall growth of China's exports.

Fourth, coordinated regional development is advancing in an orderly manner, and a new pattern of regional openness is forming quickly. In 2023, the eastern region accounted for nearly 80% of China's total exports, with a growth rate 0.6 percentage point higher than the overall rate, making significant contributions to stabilizing the export market. China's northeast, the fastest-growing region, experienced export growth of 6.5%. The comprehensive revitalization of the northeast has yielded new results in foreign trade. Meanwhile, the central and western regions continued to play a positive role in undertaking the phased trans-regional relocation of processing trade and in promoting the sustained and healthy development of processing trade.

Regarding the export situation for this year, Mr. Wang provided some information earlier. Overall, the continued sluggishness of external demand remains the main factor constraining China's export growth. At the same time, factors such as protectionism and unilateralism also impact our exports, and we will face various difficulties. However, viewed from a different angle, thanks to policy support, industrial strengths, and the collective efforts of various stakeholders, China's exports are poised to further solidify their comprehensive competitive advantage. We are confident about our exports.

Thank you.