Exports to maintain competitiveness for atleast a decade

27 Jan '07

2 min read

Huo Jianguo, deputy director of the Foreign Trade Department of Ministry of Commerce, expressed in the fifth annual meeting for import and export enterprises that China's export competitiveness would remain unchanged for quite a period. It still needs a for economic growth to rely mainly on domestic consumer market.

Huo Jianguo also pointed out that the key objectives in 2007 are to expand import and maintain a moderate growth in export.

Jianguo said that from the current development trend, in the next 8-10 years, China's foreign trade and exports will still be competitive and export will still be one of the major driving forces of economic growth.

From the experience abroad, when the per capita GDP reaches US $5,000, the state will mainly rely on domestic demand to promote economic growth. But now China's per capita gross domestic product is nearly $2,000, so it still needs some time for domestic demand to become the main driver of economic growth.

For the trade surplus, Huo Jianguo said that trade surplus with EU, the US and other countries, is structural.

The manufacturing sectors of Europe countries, the US account for only 15 percent of gross domestic product. The main competitors for China's export products in local markets are those original countries of other products.

But he also stressed that it is not a sensible growth, if the growth rate of any of our products to exceed 30 percent in the market. It even leads to countervailing investigations or trade frictions.

Huo Jianguo said, in line with the central government's spirit, China's economic work in 2007 will focus on 'investment regulation, consumption promotion, surplus reduction', of which, import expansion will be the key target, the state will give support from credit policies.

Appreciation of RMB will be a long-term trend. Meanwhile export policy will be further tightened in 2007.

Fibre2fashion, News Desk - China

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