Ministry of Commerce: International transmission is the main reason for the rise in raw material prices

Li Xingqian, Director of the Department of Foreign Trade of the Ministry of Commerce, stated at a press conference of the State Council on July 22 that since the beginning of this year, there have been difficulties such as rising raw material prices, poor shipping logistics, large exchange rate fluctuations, and rising labor costs, which have led to foreign trade companies. Operating costs are rising and profit margins are squeezed. Some foreign trade companies “do not want to take orders” and “increasing production but not profit”. Small and medium foreign trade companies are even more affected.

In terms of rising prices of raw materials, analysis shows that international transmission of prices is the main reason. The rapid increase in domestic and foreign demand has further aggravated the upward trend of prices, which has brought great pressure on production and foreign trade companies. The Ministry of Commerce stated that it will closely follow up and monitor the price trends of bulk commodities with various localities and departments, promote import diversification, and build a stable foreign trade channel for bulk commodities. The prices of some bulk commodities have already fallen.

The Ministry of Commerce has been closely following the practical difficulties faced by foreign trade companies. On the basis of in-depth analysis and judgment, the trade policy toolbox will be further optimized, the business environment will be optimized, enterprise costs will be reduced, and various market entities, especially small, medium and micro foreign trade enterprises will be supported for stable production and healthy development.

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