Authors: Minquan Liu, Peking University and Yuming Cui, HITSZ
As the largest goods trading nation and the second-largest economy in the world, it is not surprising that China’s recent trade policy moves have sparked debate. As a primary supplier of many traded goods, China holds even more impact on world price stability as Russia’s war in Ukraine continues to threaten international energy prices and food security.
Just as the world economy is struggling to recover from the COVID-19 pandemic, the war between Russia and Ukraine, two major exporters of energy and foods, has prompted some countries to turn inwards. For example, both India and Indonesia have imposed export bans to stabilise their domestic prices. This global price volatility is also placing increasing downward pressure on the Chinese domestic economy.
In 2021, China’s goods trade reached US$6.05 trillion (39.1 trillion RMB), increasing by 21.4 per cent from 2020. Of…
