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From globalization to regionalization: Sinotrans

The flows of international trade in goods and services in the world show an increasingly evident trend from globalization to regionalization, said the Chinese company Sinotrans.

To understand the essential part of the business: the company, one of the largest in the logistics sector in China, provides services related to cargo transportation, courier, shipping agency, storage, terminals and maritime and motor transport.

From his perspective of the global macro situation, as unprecedented changes in a century come on top of the Covid-19 pandemic, the global economic environment is increasingly complex and the overall rate of economic and trade growth has slowed.

Repeated waves of pandemics, slowing economic recovery, supply chain bottlenecks, geopolitical factors, and difficulties in the international multilateral trading system have increased uncertainties in world trade.

Data from the World Trade Organization (WTO) show that after world trade in goods rebounded strongly in 2021, with an expected growth of 10.8%, it will slow down in 2022, with a projected growth of 4.7%, returning to the pre-pandemic trend.

In addition, according to Sinotrans, regional economic and trade cooperation has become closer and the trend of globalization towards regionalization has become more and more evident.

Regionalization

The official entry into force of the Regional Comprehensive Economic Partnership (RCEP) will bring new opportunities for the development of economy and logistics in the Asia-Pacific region.

At the same time, from the perspective of the domestic macro situation, China’s economic growth is facing pressures from contracting demand, supply shock and expected weakening.

Under the strategic guidance of dual circulation and peak emissions and carbon neutrality goals, the company announced that it will launch a new round of optimization of the demand structure to maintain reasonable, stable and high-quality growth.

In terms of foreign trade, if the pandemic in the world’s major economies is well controlled and production capacity continues to recover in 2022, exports are expected to gradually return to normal development and the overall growth rate of foreign trade will come under pressure.

In 2021, both the global economy and China’s economy achieved growth, however, due to the pandemic and other factors, sea and air transportation capacity was limited; demand exceeded supply; and freight rates continued to run at high levels.

 

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