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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2339)	1/1/2004 4:08:42 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China trade gap seen to narrow -------------------------------------------------------------------------------- (Shanghai Daily news) China's trade surplus is expected to narrow by US$6 billion, or 30 percent, this year from 2003 amid surging imports, the State Information Center, a government think tank, said in a report. Imports and exports will continue to grow quickly this year, but the pace will slow down given the high base in 2003, which also witnessed the fastest growth in trade in a decade. The report said growth in exports this year is expected to drop by 16 percentage points, while growth in imports is seen to fall by 22 percentage points from last year. Exports totalled US$430 billion last year, up 32 percent year-on-year. Imports rose 39 percent from a year ago to US$410 billion, according to Xinhua News agency, citing Yu Guangzhou, vice minister of commerce. In 2003, China's trade surplus narrowed 33 percent to US$20 billion from a year ago. The further recovery of the US economy expects to boost China's trade. The world economy is expected to recover quickly, led by the United States in 2004. According to forecasts by the International Monetary Fund and the World Bank, the global economy will pick up 0.5 to 1 percentage point from the level in 2003. "The economic recovery creates more demand for consumer products from many developed countries and will boost China's exports," said Zhou Dunren, a professor with the American Studies Center at Fudan University. Imports and exports will maintain their growth momentum as China is absorbing an increasing flow of foreign direct investments, the report said. Exports from foreign-invested firms accounted for 62 percent of China's total overseas sales. They import a large number of raw materials and export finished products, most of which are electronics, machinery and high-tech goods. On the down side, the report said, the US dollar is likely to strengthen this year which will lessen the competitive edge of Chinese exports. In addition, China's new export tax rebate policy, which cuts the rate by an average 3 percent, will affect the growth in exports. The new rebate system takes effect today. The report also cited rising trade barriers against Chinese exports as a reason for the decline in the surplus. For imports, the report said, China's fast economic development will create more domestic demand for raw materials, high-tech equipment and resources that the country is short of. China became the world's fourth largest trading nation last year with a total trade value of US$840 billion. english.eastday.com