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  China Economy
Foreign trade major driving force of China's economy
[ 2005-04-12 08:43:58]

China's imports and exports are believed to have grown 15 and 35 percent respectively in the first quarter of 2005 over the same period last year, says a report released Sunday by the State Information Center.

The foreign trade surplus during the period was US$13.5 billion, the report estimates. Net exports have become a major driving force of China's economy.

In 2004, China's foreign trade grew rapidly. The country's trade volume totaled US$1.1 trillion, and foreign investment reached 60 billion US dollars. The favorable factors remain in effect this year and China's foreign trade maintains good momentum of development, the report says.

The driving force of exports to economic growth is getting stronger. Export volume reached US$156.2 billion in the first quarter this year and import volume was US$142.76 billion, the State Information Center estimates.

In the same period last year, China's foreign trade showed a deficit of US$8.44 billion. The rise of exports is the major driving force of gross domestic product (GDP) growth in the first quarter this year, the report says.

The growth rate of imports has slowed down, however, a sharp drop from 42.3 percent in the first quarter last year to 8.3 percent in the first two months this year.

As the central government's macro-control policy takes effect, China's booming economy is cooling down. The market demand for imports of raw materials and mechanical equipment is being reduced, which is the major factor affecting imports, the report says.

Foreign trade has actually become the real "engine power" to China's economic growth. Government statistics show that from 1978 to 2004, China's share in world trade continuously rose. Last year, China became the world's third largest country in foreign trade, with exports accounting for over 30 percent of the country's GDP.

(People's Daily Online)

 
 
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