China-US Trade Surges in First Half Year

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Last updated at: (Beijing Time) Saturday, July 27, 2002

China-US Trade Surges in First Half Year

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Two-way trade between China and the United States surged 11.7 percent in the first half of 2002, topping 41.97 billion US dollars, against the background of a fast-growing Chinese economy and a recovering US economy.

Figures released by the General Administration of Customs (GAC)show that the U.S. remained China's second largest trading partnerafter Japan. China exported 29.87 billion US dollars worth of goods to the U.S., up 19.3 percent. The U.S. is China's biggest export market.

China's imports from the U.S. dropped 3.3 percent in the first six months to 12.1 billion US dollars, according to the GAC.

Major Chinese export commodities to the US market were machinery, electronic products, furniture, lamps, toys, footwear, textile products and garments, and metal and plastic goods.

China's leading import commodities from the U.S. included machinery and electronic products, optical and medical equipment, chemicals, agricultural products, plastic products and aircraft.

Trade experts here said China's export growth to the U.S. was mainly the result of a recovering U.S. economy, whose GDP growth was recorded at 6.1 percent in the first quarter. China, on the other hand, reported a GDP growth of 7.8 percent in the first six months of 2002.

The devaluation of the US dollar against the euro has had little effect on China's exports as the Chinese yuan is tagged relative to the US dollar, said Li Yushi, vice president of the Chinese Academy of International Trade and Economic Cooperation.

Meanwhile, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) said the number of newly-approved US-investedventures in China from January to June reached 1,457, up 18.74 percent. US contractual investment reached 4.357 billion US dollars, up 17.38 percent, and actual US investment came to 2.454 billion US dollars, up 19.71 percent.

The U.S. has remained China's largest overseas investor in terms of actual investment for three consecutive years. US companies have invested in major areas of China's economy, rangingfrom mechanics, metallurgy, oil, electronics, telecommunications, chemical industry, textiles, light industry, food, agriculture andmedicine, to environmental protection, finance and insurance.

China's investment in the U.S. has also increased. Officially-approved Chinese contractual investment in the U.S. amounted to 690 million US dollars by 2001, mostly in manufacturing, engineering services, garment-making, agriculture, catering, tourism, finance and transportation.

High-level exchanges between China and the U.S. paved the way for trade and economic cooperation, analysts said. US President George W. Bush's visit to China and Chinese Vice-President Hu Jintao's visit to the U.S. were the two most important. US Trade Representative Robert Zoellick and Secretary of Commerce Donald Evans also visited China this year.

China's final entry into the World Trade Organization at the end of last year increased overseas investors' confidence in the country. China has allowed access to more areas that previously were closed to overseas investors. These are important factors behind the growth of US investment in China.

MOFTEC officials said while the two countries had seen growth in trade and investment, the US should help create a better environment for the continuing growth of trade and economic cooperation.

Article 201 against steel imports, the U.S. limiting exports toChina and anti-dumping cases against Chinese products, for example,have had a negative impact on Chinese exports to the U.S., said the officials.

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