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Chinese Trade is Mostly Foreign

A lot of people constantly complain about the impact of “Chinese” exports, and especially the trade surplus (see latest news here [1]) but have little understanding of just how “Chinese” they really are (those pesky definitions again!). It has been clear from a long time (i.e. since foreign investors were invited into China to manufacture products – for export) that a lot of “Chinese” exports are actually “foreign”.

In the latest list of the 200 top traders in China (reported by Xinhua via CBiz [2] ):

Top companies included:

In all, foreign companies accounted for US$831.7 billion dollars in trade, making up 58.5 percent of the total. The share of exports by Foreign Invested Enterprises (FIEs) in 2005 was separately reported (by HKTDC [3]) to be up by 31.2 percent to US$444.2 billion – accounting for 58.3 percent of the total.

It is also worth noting that state-owned companies have fallen down the list, while the private sector has seen strong gains. So unfair state (or state bank) subsidies (or “loans”) are also likely to have reduced. Not that the fact will take much wind out of the sails of the anti-China trade lobby.

See news sources: