China Aims to Become a Foreign Trade PowerNot long ago, the World Trade Organization (WTO) announced that China's foreign trade volume outdid that of Italy and the Netherlands for the first time to put itself at the seventh placing instead of the original ninth, thus joining the ranks of the world's big trade countries.China has made remarkable progress in foreign trade growth rate: in the past 20 years, its average growth of foreign trade volume exceeded 15 percent annually, higher than the growth rate of the GDP, leaping to 7th from 32nd among the world's countries. However, China is a large foreign trade country, not a foreign trade power. Gao Yan, spokesman for the Ministry of Foreign Trade and Economic Co-operation, pointed out in the latest China Export Commodities Fair (CECF) revealed that China's foreign trade risk-resistant ability is still weak, its export commodities mix is not reasonable, and so has a long way to go before it can become a foreign trade power. News reporter's coverage at the fair shows that there are many instances to prove that China is "a large foreign trade country rather than a power in this field". Exports are dominated by labor-intensive and resource-intensive commodities, with a small proportion of hi-tech products. Foreign trade business order still needs to be rectified and standardized. In the 89th CECF, some enterprises were engaged in a price war by selling at forced down price. The CECF business department constantly received complaints about IP right violation and fake and shoddy goods. Foreign trade disorder not only upset the market and tarnished the reputation of Chinese commodities, but also, to some extent, caused some countries to use means for trade protection and setting restrictions on Chinese products. Sources say that by the end of 2000, 28 countries and regions had launched 410 cases concerning investigation of anti-dumping and anti-subsidy measures against Chinese products, making China a country subjected to the most anti-dumping investigations on its export products. It is generally accepted in the CECF that realization of China's leap from a large foreign trade country to a real foreign trade power depends on the alteration of its general economic structure and mode of growth, for which vigorously efforts should be made to promote the export of hi-tech products, use high technology to transform the traditional industries and enhance the general technological content and added value of the exported products. The strategy for developing trade through science and technology implemented in 1999 has been crowned with notable success: the export of hi-tech products was valued at US$37 billion in 2000, up 50 percent over 1999 and 22 percentage points higher than the growth rate of the country's foreign trade. Currently, the structures of the products and exportation of the CECF have experienced major change. Products of high added value and hi-tech contents such as electronic information and household appliances occupy the most noticeable status at the fair. Electromechanical products have ranked first in terms of total business volume for three straight years, which account for nearly 40 percent of the gross business volume of the fair. As China's traditional export goods, garments accounted for over 60 percent of the textile and garments industry at the 89th CECF. The proportion of raw material fabrics and yarn shrank to 15 percent. and that of finished products went beyond the two-thirds mark, indicating that the product mix tends to become rational. The business of hi-tech, famous and practical commodities generally looked promising at the CECF. China is marching toward the goal of becoming a foreign trade power and it is hoped that this objective can be achieved in five to 10 years, said spokesman Gao.
By PD Online staff member Du Minghua | |
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