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China’s foreign trade growth likely to slow down in 2011

2011-04-26 08:50:03Source:People′s Daily OnlineAuthor:

China’s foreign trade is expected to continue steady growth in 2011 with a slightly lower growth rate, and the overall foreign trade environment facing China will moderately improve despite many uncertainties, according to the “China’s Foreign Trade Situation Report (Spring 2011)” recently released by the Ministry of Commerce.

The report shows that China’s foreign trade experienced rapid recovery growth in 2010, with the import and export value both not only returning to the levels prior to the international financial crisis but also setting new highs. China’s trade structure further advanced and its trade balance continued to improve in 2010, meeting the goals set for the “11th Five-Year Plan” period.

China’s foreign trade value was up 30 percent to 800 billion U.S. dollars in the first quarter of 2011. As the growth rate in imports was higher than that of exports, China recorded first trade deficit in about six years. According to the report, the trade deficit in the first quarter was due to a surge in import value resulting from common growth in exports and a drastic rise in commodity prices. However, this does not mark a significant change in China’s basic foreign trade situation.

According to the report, although China’s export enterprises have received more orders thanks to the continuing recovery of the world economy and the improved situation in the international market, China’s import and export situation is still very complicated.

Given various factors, the report expects China’s foreign trade to continue stable growth in 2011 with a growth rate slightly lower than that of 2010. It is expected that the import growth rate will continue to be higher than the export growth rate and the trade balance will further improve because of factors such as growing domestic demand, import promotion polices and the rise in international commodity prices.