Page 314 - 2022 White Paper on the Business Environment in China
P. 314
2 White Paper on the Business Environment in China
2.10 Merchandising
Key Take-Aways new export orders, highlighting improvement in
global demand and domestic players' ability to
• The Chinese e-commerce market is boost their earnings. The recovery of external
forecast to enjoy a compounded annual growth demand and the steady improvement of the
rate of 12.4% between 2021 and 2024 to reach domestic economy will continue to support the
US$3 trillion. growth of China's foreign trade. But growth
may drop due to the high growth base of 2020
• China's retail sales are expected to reach 50 and other uncertainties. The ministry called
trillion RMB (US$7.72 trillion) by 2025, an expected on its trade partners to increase the supplies
average annual growth of 5% for the 14th Five-Year of ocean shipping containers and enhancing
Plan period (2021-2025). price supervision in the market. It also urged
them to reinforce international cooperation and
• Sales at nine duty-free shops in the information sharing, work together to maintain
southern island province of Hainan totaled nearly the international logistics order, and promote
1.64 billion RMB (US$252.3 million) during the the smooth operation of global supply chains.
five day October National Holiday due to tourists Meanwhile, raw material prices surged in 2021
remaining in country rather than international as price transmission has become a global
traveling in 2021. phenomenon. The rapid increase in domestic
and foreign demand has further aggravated the
Covid-19 Repercussions uptrend of prices. Apart from establishing trade
facilitation working groups with 15 countries
Owing to COVID-19, shipping companies have participating in the development of the Belt and
been enduring a situation where empty containers Road Initiative, China and its partners involved
from many parts of the world are unable to in the initiative have created 14 cooperation
come back to China. This led to rising costs-a mechanisms for trade in services. China has also
threefold to six-fold surge-of shipping lanes. For worked with 22 countries to further enhance
instance, the shipping cost of a container from ties in bilateral e-commerce cooperation to
Lianyungang port in Jiangsu province to the Port boost new forms and models of foreign trade.
of Rotterdam, in the Netherlands, skyrocketed, With many countries setting goals to further cut
from US$2,500 to almost US$13,000 by mid- carbon emissions, CIMC Raffles, a subsidiary of
2021, according to industry. Despite pressures, Shenzhen, Guangdong province-headquartered
China's foreign trade rose 27% year-on-year to China International Marine Containers (Group)
18.07 trillion RMB (US$2.8 trillion) during the Ltd, announced in July 2021 that it has received a
first half of this year. The rise was attributed contract for up to six low-emission LNG-powered
mainly to robust demand that followed rapid car carriers from Wallenius Lines, a Swedish
economic recovery in major economies from shipping company. Construction of the carriers
the impacts of COVID-19. Rapid growth of cross- will take place at CIMC Raffles' Longkou shipyard
border e-commerce also contributed to solid in Yantai, Shandong province (Zhong).
trade, data from the General Administration of
Customs showed. About 40% of Chinese export- China’s economy took a knock in August 2021
oriented businesses surveyed by the Ministry from stringent virus controls and tight curbs
of Commerce reported year-on-year growth in on property, fueling concerns about the global
recovery as countries battle to get delta outbreaks
314
2.10 Merchandising
Key Take-Aways new export orders, highlighting improvement in
global demand and domestic players' ability to
• The Chinese e-commerce market is boost their earnings. The recovery of external
forecast to enjoy a compounded annual growth demand and the steady improvement of the
rate of 12.4% between 2021 and 2024 to reach domestic economy will continue to support the
US$3 trillion. growth of China's foreign trade. But growth
may drop due to the high growth base of 2020
• China's retail sales are expected to reach 50 and other uncertainties. The ministry called
trillion RMB (US$7.72 trillion) by 2025, an expected on its trade partners to increase the supplies
average annual growth of 5% for the 14th Five-Year of ocean shipping containers and enhancing
Plan period (2021-2025). price supervision in the market. It also urged
them to reinforce international cooperation and
• Sales at nine duty-free shops in the information sharing, work together to maintain
southern island province of Hainan totaled nearly the international logistics order, and promote
1.64 billion RMB (US$252.3 million) during the the smooth operation of global supply chains.
five day October National Holiday due to tourists Meanwhile, raw material prices surged in 2021
remaining in country rather than international as price transmission has become a global
traveling in 2021. phenomenon. The rapid increase in domestic
and foreign demand has further aggravated the
Covid-19 Repercussions uptrend of prices. Apart from establishing trade
facilitation working groups with 15 countries
Owing to COVID-19, shipping companies have participating in the development of the Belt and
been enduring a situation where empty containers Road Initiative, China and its partners involved
from many parts of the world are unable to in the initiative have created 14 cooperation
come back to China. This led to rising costs-a mechanisms for trade in services. China has also
threefold to six-fold surge-of shipping lanes. For worked with 22 countries to further enhance
instance, the shipping cost of a container from ties in bilateral e-commerce cooperation to
Lianyungang port in Jiangsu province to the Port boost new forms and models of foreign trade.
of Rotterdam, in the Netherlands, skyrocketed, With many countries setting goals to further cut
from US$2,500 to almost US$13,000 by mid- carbon emissions, CIMC Raffles, a subsidiary of
2021, according to industry. Despite pressures, Shenzhen, Guangdong province-headquartered
China's foreign trade rose 27% year-on-year to China International Marine Containers (Group)
18.07 trillion RMB (US$2.8 trillion) during the Ltd, announced in July 2021 that it has received a
first half of this year. The rise was attributed contract for up to six low-emission LNG-powered
mainly to robust demand that followed rapid car carriers from Wallenius Lines, a Swedish
economic recovery in major economies from shipping company. Construction of the carriers
the impacts of COVID-19. Rapid growth of cross- will take place at CIMC Raffles' Longkou shipyard
border e-commerce also contributed to solid in Yantai, Shandong province (Zhong).
trade, data from the General Administration of
Customs showed. About 40% of Chinese export- China’s economy took a knock in August 2021
oriented businesses surveyed by the Ministry from stringent virus controls and tight curbs
of Commerce reported year-on-year growth in on property, fueling concerns about the global
recovery as countries battle to get delta outbreaks
314
