Private enterprises play key role in stabilizing foreign trade

China's foreign trade in goods reached 27.3 trillion yuan ($3.92 trillion) in the first eight months of this year, up 10.1 percent year-on-year, of which the import and export by private enterprises reached 13.68 trillion yuan.

This outstanding performance proves once again that the private sector is playing an increasingly important role in stabilizing the country's foreign trade.

The downward pressure on China's economy has increased since the beginning of this year, and some foreign trade enterprises have been plagued by problems such as cancellation of orders, operating not at full capacity, and slower logistics. In particular, the rising prices of raw materials and soaring logistics costs have further squeezed foreign trade enterprises' profits. Declining external demand arising out of the unstable international economic and political climate has also added to their dilemma.

However, it is encouraging to see China's private enterprises overcoming difficulties and demonstrating strong resilience. China's private enterprises have increased foreign trade efforts in the Association of Southeast Asian Nations, Latin America and countries involved in the Belt and Road Initiative. In the first half of this year, their imports and exports to ASEAN, Latin America and Central Asia grew by 20.5 percent, 16.4 percent and 53.3 percent year-on-year, respectively, all higher than the country's overall foreign trade growth. Private enterprises have also strived to raise the level of internal management, actively develop new products, and optimize the export commodity structure, further improving their international competitiveness.

The vigorous development of cross-border e-commerce and new forms of business has helped many private enterprises cope with changing external demands and challenges. What is more important is the introduction of a series of policies, including credit support, tax reduction and rebates to stabilize foreign trade.

The authorities should continue to implement various supporting policies to increase the "sense of gain" of private enterprises and enhance their ability to expand the market. On the other hand, private enterprises should continue to tap their potential, improve their management, and the quality of their products, to further consolidate their position as the cornerstone of foreign trade.