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China on track for another record year of foreign trade
POSTED: 5:06 p.m. EDT, December 27,2006

This year there been has significant pressure on the RMB to appreciate, prompting the government to introduce measures to adjust and control export, which included reducing the rebate tax on certain products and limiting the export of products that consumed a lot of energy and polluted heavily. However, both export and import have continued to grow by a significant margin.

The General Administration of Customs estimated that the total value of China's foreign trade will reach US$1.758 trillion, a 24 percent or $330 billion increase from last year. The foreign trade breakdown is $963 billion for exports, up 27 percent, and $795 for imports, up 20 percent.

The Ministry of Commerce says that export has continued to grow by a large margin, with the export growth rate still accelerating and the balance of trade becoming increasingly favorable. The mainly reasons for this are that the world economy is growing stably, Chinese products are becoming more international competitive and macro-controls have been progressively introduced. This has lead to a reasonable growth of export and the rapid growth of the national economy has stimulated import demand.

The World Trade Organization (WTO) estimates that the value of China's foreign trade may exceed Germany's by the end of 2007 to make China the world's second largest trading power behind the US.
From:People's Daily Online
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