Chen sees China trade to rise 18% to US$2.6t
COMMERCE Minister Chen Deming said in Beijing yesterday that he expected China’s foreign trade to grow about 18 percent to US$2.6 trillion in 2008, despite the downturn in foreign demand during the second half of the year.
He also estimated that foreign investment had exceeded US$90 billion, up about 20 percent. The global financial crisis has cut exports and foreign investment as the global economy slows into a downturn.
The economy grew 9 percent in the third quarter, the slowest pace in five years, as the global crisis sapped demand for Chinese goods and domestic industrial production waned in response to weak demand and rising raw material costs.
Foreign direct investment totaled US$86.4 billion in the first 11 months, up 26.3 percent year on year. The increase was lower than the average of 35 percent for the first 10 months.
The actual use of foreign investment tumbled 36.5 percent year on year to US$5.32 billion in November.
Cai Qiusheng, an official with the State Administration of Foreign Exchange, was quoted by Shanghai Securities Journal yesterday as saying that foreign exchange reserves were below their peak at US$1.9 trillion as of the end of September.
From January to November, foreign trade was US$2.38 trillion, jumping 20.9 percent year on year. However, November’s total trade stood at US$189.89 billion, down 9 percent.
Chen told a national conference yesterday that the ministry would take steps to maintain stable export growth next year.
They will include expanding financial and fiscal support for exports, such as more credit to exporters, and making more efforts to explore emerging markets in south and central Asia, the Middle East, South America and Eastern Europe, while consolidating China’s foothold in traditional markets.
The ministry would also strive to improve the structure of export products next year by promoting domestic brand-name products, large machinery and equipment and agricultural products. It would also emphasize labor-intensive products and support small firms’ technological innovation.
The ministry pledged to boost trade in services, including software, culture and traditional Chinese medicine. It also vowed to expand imports, especially of equipment with up-to-date technologies as well as key spare parts, through policies including tariff cuts.
Tags: china trade, exports, Foreign-Trade