China Set Trade Growth Goal at 7 Percent in 2003

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Last updated at: (Beijing Time) Tuesday, December 24, 2002

China Set Trade Growth Goal at 7 Percent in 2003

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China's imports and exports are expected to increase three times to US$2,000 billion in 2020. Shi Guangsheng, minister of foreign trade and economic co-operation (MOFTEC), set a goal of 7 percent growth for China's total foreign trade volume next year.

Exports of machinery and electronic products should grow 10 percent year-on-year and those of high technology products are expected to surge by 20 percent.

Shi made the predications at a three-day national conference on foreign trade and economic co-operation, which started Monday in Beijing.

Senior trade officials from central, provincial and municipal governments assessed the rapid development of China's foreign trade in the past five years and discussed difficulties and tasks for the coming year.

A number of factors will benefit China's foreign trade growth next year, including a rebound in international demand, a transfer of manufacturing industry to China and the positive effects of China's entry to the World Trade Organization. But Shi urged trade officials to watch out for an unstable global economic recovery, a continued fall in international investment and reviving international trade protectionism.

Uncertainties over a possible United States-led war against Iraq and its influence on the world economy and international oil prices would also have an impact.

He noted the importance of maintaining the continuity and stability of China's trade-supportive policies in boosting exports.

While opening the service sector wider to foreign investors, China will explore new ways of attracting foreign investment, including mergers and acquisitions and foreign investors' participation in the disposal of non-performing assets, he said.

The minister promised more policy support for China's poverty-stricken western regions to enable them to step up their export growth, use foreign direct investment and co-operate with eastern parts of the country.

He said MOFTEC is busy drafting a series of laws and rules on contracting overseas projects and labour service exports.

It is also seeking to introduce regulations promoting information development of foreign trade, reform of State foreign trade firms and the establishment of intermediary organizations to improve its supervision of China's foreign trade.

Foreign Trade to Hit 610 Billion US Dollars

China's foreign trade, rising at an average annual rate of 13.8 percent from 1997, was expected to hit 620 billion US dollars this year, Shi Guangsheng said Monday.

Foreign trade and investment are playing bigger roles in promoting China's national economy, with more than 70 million Chinese currently working in this area, he said at the annual MOFTEC working conference here.

More than 23 million Chinese now worked in overseas-funded enterprises, an increase of 5.5 million from 1997, he added.

According to Shi, China's foreign trade in 2001 accounted for 4.3 percent of world trade, ranking it 6th in global trade. In 1997 the rate was only 2.9 percent and China was the world's tenth biggest trading nation.

In 1997, China's foreign trade accounted for 36 percent of the gross domestic product, while in 2001, the proportion became 44 percent. The average annual proportion of foreign direct investment in fixed assets had exceeded 11 percent since 1998.

Foreign investment and foreign trade strongly promoted economic development, restructuring and industry upgrading, while increasing national revenue and creating jobs, the minister said.

China's foreign exchange reserves had reached 274.6 billion US dollars, the second highest in the world, he said.

Up to 2001, China had attracted the largest amount of foreign investment among developing countries for nine consecutive years, he said. This year China expected actual foreign investment to exceed 50 billion US dollars.

About 400 out of the world's top 500 business giants had come to China, he said, adding that high-tech, capital-intensive and service industries were luring more overseas funds.

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