China's trade and FDI: highlights in a gloomy view -- Business -- People's Daily Online
China's trade and FDI: highlights in a gloomy view

08:26, August 18, 2009

MOFCOM: China to secure 2 trln USD foreign trade in 2009

China's exports have actually rebounded month on month since March. Exports went back to 100 billion USD and the total foreign trade was back to 200 billion USD in July. That was the first time this year. And Chinese products expanded their share in major markets including the US, EU and Japan. Imports from China gained more than 3 percentage points in the total imports of those markets.

"China's foreign trade is expected to stand at about 2 trillion USD for the whole year," said Vice Minister of Commerce Fu Ziying.

· Ministry: cautiously upbeat on trade prospect in H2

China is cautiously optimistic about the rebound of its export in the rest of the year with its strong competitiveness in labor-intensive products, expanding share in major markets, improved import but weak external demand.

· Signs of improvement seen in China's July foreign trade

July exports increased 10.4 percent from June to 105.42 billion U.S. dollars. Imports rose 8.7 percent in July from the previous month to 94.79 billion U.S. dollars.

· China's major export base sees signs of recovery
· Overseas market share of China's mechanical and electrical products increased

China's mechanical and electrical products made up 25.1 percent of the US imports in the sector during the first four months of the year, 4.1 percentage points higher year-on-year.

· China's textiles show an expanding trade surplus

While China's textile exports dropped in the first half of the year, China continues to maintain a stable share of the international market. Trade surplus of China's textile sector increased 11.58 percent between January and May year-on-year.

· Chinese exporters have confidence in U.S. market
· Intensive tax rebates facilitate exports, restructuring

China's seventh hike in export tax rebates took effect on June 1, making the total number of products involved in export tax rebate surpass 8,000 types.

· China increases export rebate for 7 times in 10 months
· Export credit insurance supports exports

It is expected that 84 billion USD of short-term export credit insurance will be allocated this year. 50 billion USD of exports and secure more than 10 million jobs in relevant industries will receive direct boost.

· China's State Council rolls out more policy to boost exports
· China shortens proohibited processing trade list

"Catalogue of Prohibited Commodities in Processing Trade" is adjusted by removing 79 ten-digit commodity codes. Products removed include some plant products, light industry products, metal compounds, petrochemical products, iron and steel products, and non-ferrous metal products.

· China wants MES for fair market

"China has more say than any other country on its own market economy status (MES) or economic system; however, an early grant of MES will help create a fair competition environment for Chinese enterprises on the world market."

· China to be cautious on using retaliatory trade measures

The Chinese government still holds a prudent attitude toward using retaliatory trade measures against the mounting trade protectionism, although there is increasing voice for such actions against some import products from the academic circle.

· Less trade but more disputes in crisis? - Special
· Shrinking overseas demand, increasing trade frictions challenging China's textiles export

Although there has been a trend of stabilization and recovery in the industry over the past two months, overseas market demand remains very weak and the risk of trade frictions is increasing.

· Oil imports poised for recovery in second half

China's oil imports grew marginally in the first half as the country's economy slowed, but may see further growth in the second half as demand improves.

· Commodities boost China's port recovery

The throughput at China's major coastal ports amounted to 500 million tons in July, up 12.9 percent from the same month last year, marking the first double-digit growth since last September.

· US hi-tech products may flow in

"The US pledged to facilitate exports of high-technology products from the US to China."

· China sends buying delegation to Europe and US
· China to lower tariffs on luxury good imports
· China's FDI falls 35.7% in July, 17.9% in H1

China received 5.36 billion U.S. dollars of foreign direct investment (FDI) in July, down 35.7 percent year on year.

· World Bank: FDI in China to fall by 20% in 2009

The World Bank predicted on June 30 that foreign direct investment in China would decrease by 20 percent in 2009. However, China will still be the top destination for FDI among developing countries.

· UNCTAD: China still the most attractive destination for FDI

According to a survey conducted by the UNCTAD, China stands at the top of the five countries that are most attractive to foreign investment during the financial crisis, followed by India, the US, Russia and Brazil.

· Less investment in real estate slashes FDI

"The slump of foreign investment in the real estate market is the major reason behind the plummeting foreign capital flow into China’s service sector."

· Number of foreign companies quitting Chinese market hits 3 year high

In the first half of 2009, the number of foreign-funded enterprises canceling their registration increased significantly, hitting the highest level compared to the same period since 2006.

· Plan for foreign firms' listings gathers steam

China's central government is showing renewed interest in inviting foreign-funded firms to be listed in the country. It is also linked to government efforts to stop FDI decline.

· China further facilitates foreign investment inflow

Incorporation and changes of foreign-funded investment companies with the registered capital of or below 100 million USD will be subject to the approval from commerce authorities of the province where the company is registered.

· MOFCOM: FDI devolution approval not market relaxation
· "No special curb" for foreign capital to invest in China's real estate sector, MOC official

There was no "special curb" to restrict foreign capital from entering China's real estate sector. "If the economy warm up in the second half, the declining rate of foreign investment is expected to slow down."

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