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Decoupling can be countered with hook of opening-up

China Daily | Updated: 2020-08-03 07:49
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China's exports in the second quarter saw positive growth, but the situation is still grim for exporters because of the rise of isolationism and trade protectionism and the chaotic pandemic situation in the United States and other markets.

It is necessary for the foreign trade sector to improve its ability to cope with the situation. Companies need to strengthen their capabilities to resist risks, which includes paying attention to the business environment, preventing and controlling credit risks, supply chain risks, liquidity risks and geopolitical risks.

It is necessary for foreign trade companies to ensure the stability of their capital chain, while more credit, insurance and policy support are needed to support them.

In order to balance the negative effects of the pandemic, more support is needed to develop new businesses such as cross-border e-commerce and the trade in services. Some foreign trade companies also face the problem of their supply chains being cut, the government can help by arranging more flights and letting the China-Europe railway play a bigger role.

Of course, safety must be ensured when promoting exports. Quarantine measures must be strengthened while safety standards must be met to ensure the supply chains are safe, stable and efficient.

New opportunities have emerged from the pandemic. Due to certain Western countries' failure to control the spread of the novel coronavirus in time, many multinational companies are facing difficulties and China can attract some high-tech enterprises to invest here by offering favorable policies.

Higher-level opening-up to the outside world is also needed. While further opening-up to the world, we must also prevent and control risks. Only with security ensured can the national economy recover in a faster and more stable way. In particular, the western and northeast regions need to make every effort to improve the business environment and seize the opportunities.

Under the impact of the pandemic, trade protectionism is likely to intensify. China needs to use the "hook" of high-level opening-up to deal with the "decoupling" trend that has emerged.

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