China urges companies to prepare for risks

Chinese Premier Li Keqiang urged Chinese foreign trade companies to prepare for trade risks.

According to a report by the South China Morning Post on March 21, Chinese Premier Li Keqiang called on Chinese foreign trade companies to strengthen their resilience in the face of growing external challenges, especially the United States' tariff increases. At a meeting held in China's Fujian Province, Li Keqiang emphasized the complexity of the foreign trade situation and stressed the need for companies to diversify their markets, innovate their trade methods, and enhance the competitiveness of their products.

Li Keqiang also noted that the contribution of private companies to China's foreign trade is significant and called on the government to provide stronger support for private companies. He also visited several companies. During this process, Li Keqiang emphasized the importance of enhancing brand influence and cooperation among foreign trade companies, called for improving the effectiveness of supervision and customs to support their operations, and reiterated China's plan to attract foreign investment.

Recently, American companies have accelerated their withdrawal from China, with industrial, development, and research and technology companies accounting for 41% of those withdrawing from China. Although 38% of companies plan to relocate to other developing countries in Asia, the pull of developed countries such as the United States, the European Union, Japan, and Korea is growing. According to economists, Trump's tariff policies have severely damaged the declining Chinese economy.

The Organization for Economic Cooperation and Development (OECD) has forecast a slowdown in the Chinese economy, indicating that it will grow by 4.8% this year and decline to 4.4% by 2026.