18 Percent Growth in Exports, What Does It Signify?

Home>>Business

Last updated at: (Beijing Time) Friday, September 27, 2002

18 Percent Growth in Exports, What Does It Signify?

In contrast with major industrial countries, China's exports volume in the last eight months amounted to US$200.7 billion, up 18 percent over the same period of last year. So why can China obtain a growth in foreign trade export despite the severe environment?

DISCUSSION

CHINESE

SEND TO FRIEND

In contrast with major industrial countries, China's exports volume in the last eight months amounted to US$200.7 billion, up 18 percent over the same period of last year.

Affected by continuous slowdown of the global economy and the three sluggish economic entities, the world trade remains stagnant. This year has witnessed more or less decrease in export from major industrial countries with some by way of exception. The US, topping the list of the world trade, declined 8.9 percent in the first half of this year as against the same period last year, France 1.9 percent, Germany 0.5 percent, South Korea 3.1 percent, except Japan which saw an increase of 1.6 percent.

From the end of last year to the beginning of this year, experts and scholars all keep their fingers crossed to see a zero growth in China's foreign trade considering the global economic slowdown and the adverse influence brought about by the US 911 incident on the world economy. At the national work conference on foreign trade by the end of last year, Shi Guangsheng, minister of the Ministry of Foreign Trade and Economic Cooperation (Moftec) set the goal, trying to make an increase in this year's exports.

However, according to the statistics released by the country's Customs, China's general trade export in the last eight months scored a high growth, hitting 16.3 percent. Moreover, export of machinery and electronic goods grew by 27.2 percent, accounting for 47.5 percent of total foreign trade export. And the hi-tech export witnessed an even more considerable growth, exceeding 40 percent.

So why can China obtain a growth in foreign trade export despite the severe environment? According to some authoritative sources, several factors contribute to the gratifying situation of China's foreign trade, especially of the foreign exports. First, the national steady and sustainable development in economy supplies varieties of exporting goods.

Secondly, China's WTO membership brings along positive effects. Although the first year after China's WTO entry has seen some new problems occurred, such as the trade and green barriers, the restriction imposed on the Chinese commodities by foreign counterparts was comparatively relieved, which has provided a wider international market for China's export.

Thirdly, after the US 9.11 incident many multinationals transfer their production and purchase to some relatively securer countries and regions. And thanks to its stable political situation, continued economic growth and sound investment environment, China has attracted many multinationals to set up branches one in the wake of the other, which leads to a series of monthly high and will continue to play a positive role.

Fourthly, the daily necessities constitute a larger part of China's exporting commodities, whose market demand won't see much reduction even in economic recession. And fifthly, the Chinese enterprises haven't lain down, forgetting to improve their ability in tapping for more international markets, and the ratio of direct export has expanded, while the carrying trade shrunk.

Since the reform and opening-up, China's commodity competitiveness has been greatly enhanced due to the improved techniques and technologies as well as the relatively low costs. China's exports to its largest market, the United States grew by over 20% despite the counterpart's economic depression, and exports to Japan and EU also grew to a certain extent. Furthermore, export to the Southeast Asian countries and Russia scored a larger growth than the average. All above are important factors contributed to the growth rate of 18 percent.

Related departments of the General Administration of Customs forecasted the export volume in September will hit a new monthly high, totaling US$30 billion, and still there is possibility to record an annual growth rate of 15 percent. Yet the world witnesses the prevailing international trade protectionism and continuous trade conflicts. Some countries even place all sorts of obstacles on China's imports, such as quarantine standards, protection measures, anti-dumping etc, which seriously threaten China's foreign export. Hence, much attention should be paied to these unfavorable factors and proactive counter-measures be taken.

By PD Online Staff Zhu Lizhen

Questions?Comments? Click here

Foreign Trade Increases 16 Percent in January-August

Prospects of China's Foreign Trade Not Optimistic in Second Half Year

China Since 1990: Facts and Figures Tell of Rising Prosperity ( 40 Messages)

Source of Cult Members' TV Hijacking Pinpointed ( 9 Messages)

Two Chinese Students Shot Dead When Robbing a Malaysian Bank ( 2 Messages)

Six Major Measures Promote China's Century Prosperity ( 11 Messages)

China to Build up Oil Stockpile ( 22 Messages)