Home / Knowledge / News / Textiles / Textile trade surplus may be a fraud

Textile trade surplus may be a fraud

Jan '07
On January 18, Vice Minister of Commerce Gao Hucheng said at the signing ceremony, “China's strong trade surplus will continue until the middle of this century.”

Later, Li Deshui, director of National Statistics Bureau said, “China's trade surplus is not as large as it is reflected. Exchange speculation and Rebate fraud by some enterprises caused distortion in China's foreign trade surplus.”

In 2006, China's foreign trade surplus was nearly US $177.5 billion, an incredible growth of 74 percent over 2005.

Li Deshui cited the data by Wang Zhi Hao, a senior foreign analyst from the Standard Chartered Bank of UK, China's trade surplus in 2005 was less than $102 billion as publicly released. The actual trade surplus was $35 billion, and Wang called the remaining $67 billion as 'non-trade inflow hidden in foreign trade', which accounted for 65 percent of the total trade surplus.

"It is hard to give an exact figure as how large the final real figure of China's trade surplus is.” Wang started to study real data of trade surplus a few years ago.

One phenomenon caught his attention that according to Chinese Customs statistics “there are a large amount of exported goods registered. However, the statistics of the eight countries trading with China indicate that these countries have not received the goods with such high volumes.” This shows China's exporters may have presented false export reports to the Customs. The purpose of doing so is to help increase the export tax rebate and the return of foreign capital to enter China under the name of trade payments.

Must ReadView All

Peru's CPTPP ratification likely to boost trade with Vietnam

Textiles | On 23rd Jul 2021

Peru's CPTPP ratification likely to boost trade with Vietnam

Peru's official ratification of the Comprehensive and Progressive...

Pic: Shutterstock

Apparel/Garments | On 23rd Jul 2021

Bangladesh to continue to attract FDI defying downturn: US

Bangladesh will stay resilient, continue to attract foreign direct...

Pic: Shutterstock

Apparel/Garments | On 23rd Jul 2021

Prime Content| Japan's clothing imports increase 4% in H1 2021

Japan’s imports of clothing and accessories increased by 4 per cent...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Rishav Bajoria & Subham Sengupta,

Rishav Bajoria & Subham Sengupta

Launched in October 2020, the Gumti app could not have come at a more...

Zayed Moyeen,

Zayed Moyeen

Far East Knitting and Dyeing Industries LTD (FEKDIL) was established in...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Shlomzion Chen, Seevix

Shlomzion Chen

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha &amp; Jigar blends India's unique handcrafts...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search