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China shares development dividends with APEC economies

Source:China Daily Published:2023-11-16 09:45

Unwavering support also shown for trade liberalization and WTO

At several wharves owned by New Times Shipbuilding Co in Jingjiang, Jiangsu province, engineers and workers are busy welding steel hulls and testing equipment.

Their mission is to ensure that their work meets standards set by various ship classification societies and the specific demands of clients.

But the majority of the container ships and oil and chemical tankers built at the shipyard will not be delivered to domestic buyers.

Instead, they will go to shipowners in many Asia-Pacific Economic Cooperation economies, including Singapore, Indonesia and the United States, as these countries are experiencing a significant surge in demand for new vessels equipped with dual-fuel engines, and offered at competitive prices. Deliveries of these vessels address the rising need for ocean shipping services.

Du Haiming, assistant director of the sales department at New Times Shipbuilding Co, said, "Even though many parts of the world still face uncertainty and challenges in the global economy, including fragile supply chains and subdued investment sentiment, orders placed by our clients in the Asia-Pacific region have remained high since last year."

Government officials and experts noted China's precedent-setting role in fostering mutually beneficial cooperation in the Asia-Pacific region and encouraging APEC economies to bolster their economic and technological exchanges.

They emphasized that China, as a major trading nation, has not only supplied a significant quantity of manufacturing products to other APEC markets, but has also distinguished itself for unwavering support of trade liberalization, the World Trade Organization and its rules.

China's foreign trade with APEC economies amounted to $3.74 trillion last year, representing 59.7 percent of the country's total import and export value. Among China's top 10 trading partners, eight of them are APEC economies, Ministry of Commerce data show.

Wu Haiping, director of the general operations department at the General Administration of Customs, said that after more than three decades of development, cooperation among APEC economies has evolved beyond the two traditional pillars of trade liberalization and investment facilitation, as well as economic and technological cooperation. It has extended into new domains, including technology innovation, modern agriculture, trade in services, inclusive growth, and digital and green economies.

An economic analysis published by the APEC Policy Support Unit shows that economic growth in the APEC region is expected to reach 3.1 percent this year, following a 2.6 percent moderation last year.

With APEC playing a key role in supporting the world's economic recovery, He Yadong, spokesman for the Ministry of Commerce, said early this month that China will take proactive steps to advance its accession into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.

He said China looks forward to joining these two trade deals at an early date, and is willing to make joint efforts with all parties to actively promote regional economic integration and the liberalization and facilitation of trade and investment in the Asia-Pacific region.

Zhao Ping, dean of the academy at the China Council for the Promotion of International Trade, said multilateral mechanisms for economic cooperation and free trade deals, such as APEC, the Regional Comprehensive Economic Partnership agreement, and the Free Trade Area of the Asia-Pacific, are practical in promoting free trade and consolidating the achievements of globalization. This is especially the case in view of a slowdown in global economic growth, Zhao said.

Kok Ping Soon, CEO of the Singapore Business Federation, which represents more than 29,000 Singaporean companies globally, said China has the dual advantages of rapid economic growth and technological progress, coupled with the mature development of its businesses.

"We welcome Chinese companies to set up regional hubs in Singapore to extend their reach into other APEC economies, especially countries in Southeast Asia," Kok said.

Naja Aki, vice-president of Toshiba (China) Co, said numerous valuable experiences can be shared with other countries in the Asia-Pacific region, such as China's support for technological innovation, fast development of tech-intensive green products, and the provision of human resource training for the public and private sectors in the region.

Trade development

Many APEC economies are seeking ways to advance free trade in the global economy during the Asia-Pacific Economic Cooperation Economic Leaders' Meeting in San Francisco, amid the proliferation of trade and economic groups.

As a result, market watchers and business leaders from China and the US believe that improved bilateral economic and trade relations will be conducive to the economic development of both countries and contribute to the stability and growth of the global economy.

Chen Wenling, chief economist at the China Center for International Economic Exchanges, said stable business ties between the world's two largest economies will serve to counteract anti-globalization sentiments and growing protectionism.

Efforts by the US to facilitate the reconfiguration of supply chains in the Asia-Pacific region have already encountered substantial obstacles. Supply chains have become longer, more complex, and costlier structures, potentially yielding outcomes contrary to their intended objectives, Chen said.

Craig Allen, president of the US-China Business Council, said: "The US and China have benefited considerably from their long-standing economic integration. We remain committed to expanding the US-China commercial relationship by advocating for the US companies doing business in China, and look forward to continuing to support that growth in the long run.

"US businesses continue to be optimistic about the size and dynamism of China's markets. In an evolving world, we need to work together to safeguard strong, stable and resilient global industrial supply chains for the future."

Lance Rezac, vice-chairman of the US Soybean Export Council, said it has always firmly believed that the Chinese and US economies are deeply intertwined, and that there is a great deal of potential for cooperation. Steady growth in agricultural trade can be observed between the two countries.

Rezac predicted that China's demand for soybeans will drive continued growth in the US' soybean trade. From the 2024 marketing year to the 2033 marketing year, China's soybean imports are expected to rise from 101.5 million metric tons to 134.1 million tons, an average annual growth rate of 3.1 percent.

Data from the US Department of Agriculture show that China's soybean imports from the US totaled 31.5 million tons in the 2023 marketing year — which ran from September last year to August — accounting for 59 percent of US annual soybean exports, a rise of 2.3 percent year-on-year.

Deep involvement

Eager to secure more market share in China, more than 200 US exhibitors took part in the sixth China International Import Expo in Shanghai this month. They included a wide range of agriculture, automotive, technology, consumer goods, pharmaceutical and healthcare companies. It was the largest US delegation in the expo's history, information released by the American Chamber of Commerce in Shanghai shows.

Arnold Li, senior vice-president of Ingersoll Rand, a US industrial goods manufacturer and six-time participant in the Shanghai expo, said well-aligned China-US business relations contribute to the expansion of US companies conducting operations in China.

"With strong determination and long-term confidence, we will continue to increase investment in local research and development capabilities in China, especially in digitalization and technologies for the new energy sector," Li said.

He said China has progressively bolstered its innovation and production capabilities, which will enable Ingersoll Rand to export more of its products made in China, particularly to economies in the Asia-Pacific region and countries and regions taking part in the Belt and Road Initiative.

Tapestry, the luxury goods group headquartered in New York, is upbeat about its Chinese market, and plans to open 60 more stores in the country by the end of 2025.

Yann Bozec, Tapestry's president for Asia-Pacific, said: "China is not just a market, but also a source of inspiration for breakthroughs and fashion innovation. We will continue to explore opportunities for local collaboration to bring more innovative products and experiences to Chinese consumers."

Liu Zhenmin, former UN undersecretary-general for economic and social affairs, said in an interview with China Daily last month that China's development presents opportunities, not threats, to the rest of the world. Western countries need to increase their understanding of China and be more accommodating to the nation's development, Liu added.

Chinese Commerce Minister Wang Wentao told media last week that the Chinese path to modernization is a way of common prosperity for all the people, and China welcomes companies from all countries to share the dividends of its market.

Editor:Zhou Jinmiao