We hope to achieve double digit export growth rates - MoC

17 Mar '10

2 min read

The Chinese Minister of Commerce, Chen Deming recently said that although, in the first two months of the current there was substantial increase of exports on a year-on-year comparison, the main reasons behind the increase were seasonal factors and refilling of inventory by Western countries.

It is noteworthy that, while year-on-year growth was substantial, total imports and exports in February fell 11.5 percent from the previous month, of which, exports declined 13.7 percent, imports dropped 8.9 percent.

The external market has not yet fully recovered, which leads one to believe that export situation is still extremely complex. February's trade surplus narrowed to less than US $10 billion and he does not rule out deficit in any of the months in 2010.

"China's trade surplus has been declining, and is also falling fast and current trade surplus will be confined to about five percent of China's GDP," Chen Deming said. He added by saying, other countries should not take trade surplus as an excuse for pushing appreciation of the RMB.

The Ministry of Commerce sets annual target of imports and exports this year and according to Deming, imports and exports of goods should realize an eight percent growth year on year, trade in services should achieve a 10 percent year on year. Relevant experts generally agree that the above-mentioned targets are relatively lower, when considering the low base levels of 2009.

Chen Deming explained that the growth target of China's foreign trade set by the Government is modest and hopes that this year's export growth should at least reach 8 –10 percent. There are uncertainties in the world economy, consumption in major Western economies is not ideal, unemployment rate is still high, saving rate is relatively low, and so it is difficult for China's exports to fully restore to those attained in previous years.

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