(Yicai) Feb. 1 -- It is crucial for China to maintain a stable share in international trade this year, given the less optimistic global demand, according to the director and researcher at the Institute of Foreign Trade Research of the Ministry of Commerce.

Its share of the international export market directly reflects a country’s competitiveness, Liang Ming told Yicai. Therefore, if China keeps its export share stable, it would maintain a very robust competitiveness, he added.

China’s overall export volume in US dollar terms fell 4.6 percent to USD3.38 trillion last year from the year before, while exports from other countries and regions dropped 5.6 percent, Liang noted. China’s share of international exports was likely 14.2 percent last year, unchanged from the previous one, he predicted.

China’s foreign trade structure is being continuously optimized. Last year, private companies contributed 62 percent to the total export volume, up 12 percentage points from 2019, according to customs data. They also accounted for nearly 54 percent of the country’s foreign trade last year, up 3.1 percentage points from the year before.

The overall number of trade orders remained stable, Liang said. Some Chinese manufacturers are relocating their production of labor-intensive and cost-sensitive goods to other countries to reduce costs, break trade barriers, get closer to consumers, reduce friction caused by trade imbalances, and improve profitability, he explained, adding that this can also allow the country to optimize its trade and industrial structures.

The transfer of trade orders does not imply supply chain decoupling or disruption, as China would still maintain research, development, design, and core production links while strengthening cooperation with countries involved in production, processing, and assembly tasks, Liang noted. Instead, the transfer of orders will bring an extension of the supply chain and spillover effect, he pointed out.

Editor: Futura Costaglione