MNI POLICY: China's Trade To Fall Sharply: Official

By Wanxia Lin

     BEIJING (MNI) - China's import and export growth in the first two months of

2020 is likely to fall sharply as the coronavirus epidemic poses severe

challenges to foreign trade, said Li Xingqian, head of the Foreign Trade

Department of the Ministry of Commerce at a briefing on Friday. 

     "The impact on foreign trade in the first quarter should not be

underestimated, but it is still tolerant," said Li, adding that the ministry is

confident and remains moderately optimistic in its outlook for the year. 

     Here are other key points from the briefing: 

     - Some countries have imposed restrictions on the import of live animals,

animal products and certain food products from China, which have caused negative

impacts for China's related exports. 

     "We hope relevant countries will respect the opinions of WHO experts, and

not adopt excessive trade restrictions," said Li. 

     - There will be no large-scale layoffs by foreign trade companies, based on

the continuous monitoring of key regions and sectors, said Li. 

     - Over 80% of major foreign companies in Shanghai, Shandong and Hunan

province have resumed operations. Operations in most locations are expected to

resume by the end of February, said Zong Changqing, head of the Foreign

Investment Department at MOFCOM. 

     - Over 95% of large-scale supermarket chains nationwide are open, as are

80% of convenience stores, said Zheng Wen, head of the Circulation and

Development Department at MOFCOM. At the same time, about half of department

stores and shopping malls remain closed, he added.

      - "Belt and Road" projects overseas are generally stable with no

significant project delays, said Chu Shijia, head of the Comprehensive

Department at MOFCOM. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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