Official media has announced that China’s foreign trade is estimated to increase by 15 to 20 percent in 2006. The Ministry of Commerce (MOC) reported that total trade value may be in the range of US$1.63 trillion and US $1.7 trillion.
In 2005 China’s trade value was US$1.4 trillion. The overall trade surplus hit a record US$101.9 billion, while the surplus with the US alone was a politically sensitive US$202 billion. China’s imports rose 17.6 percent, to US$660.12 billion, while exports rose 28.4 percent to US$762 billion. The trade surplus in the first two months of 2006 is reported to have fallen, partly due to higher oil imports, but it is unlikely that the pressure from the US will cease unless there is dramatic change in the trade figures and / or in the valuation of the Renminbi (RMB).
Pressure points for trade in 2006 include ongoing problems with the EU and US over the trade deficit, as well as accusations of dumping in sectors such as textiles, shoes, furniture, auto parts, home appliances, chemical products and iron and steel products…to name a few.
In an attempt to help address the trade deficit issue, and to boost domestic demand, the MOC is reported to be planning to cut import duties on some products this year. However, the details of the plan are not yet known.
Congress is watching with interest…
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China’s trade to grow 15-20% in 2006
Financial Express – Bombay,India
BEIJING, FEB 27: China’s foreign trade will probably expand by 15 to 20 percent this year despite the likelihood of a new round of trade disputes, a commerce …
China to cut duties to spur imports – minister
Forbes – USA
BEIJING (AFX) – China hopes to spur imports this year by cutting duties on certain products, the official China Securities Journal reported, citing Minister of …
China’s Feb. Trade Surplus Probably Narrowed on Rising Imports
Bloomberg – USA
March 9 (Bloomberg) — China, the world’s third-largest trading nation, probably had its smallest trade surplus in 10 months in February as growth in oil …