China Import And Export Show Signs of Slowing Down

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Zhong Shan, the vice minister of China’s Ministry of Commerce (MOC), expressed that since this year, the foreign trade has kept an increasing trend yet the increasing speed is obviously falling back. Viewing from external point, the international trade environment is more complicated.
Zhong Shan expressed on 17th that since this year, China’s foreign trade has been kept in an increasing trend, but the increasing speed shows a declining trend. Situation of foreign trade in the next half year allows no optimistic.

The above statement was made in a conference related with China’s exportation of agriculture products. He said, from an external point of view, the international trade environment is more complicated for the uncertainty of the trend of European sovereign debt crisis, especially when the Greece crisis became more and more severe, which further cracked the market confidence.

He also said the MOC attaches more importance to competitions from developed and developing countries. Influenced by the economic recovery stimulation and presidential election, US government kept push forward the implement of the Export Countries Proposal. While developing economic entities represented by India also value the export most. For example, the export is expected to be doubled in three years in India according to its export revitalizing strategy promoted recently.
In the month of May this year, the increasing speed of export fell by 10.5% comparing with April. Mr Zhong said that from the inner point of view, the advantages for exportation are weakening. As researched, enterprises’ manufacturing and operating cost increased by 15% to 25% from the same period last year which makes it harder to maintain the increasing speed.

In the aspect of import, Mr Zhong predicted that as the regulation and control policies getting more effective, the increasing speed of import may fall back in the next half year. As measured, China’s PMI import index has kept falling in the last 4 months. Meanwhile, the increasing speed of actual import number fell with the actual import number increased by 6.1%, a 6.7% decrease from April.

As statistics shows, China’s total import and export value in May was 301.27 billion US dollars that saw a 23.5% increase but the increasing speed fell by 2.4% from April. Mr Zhong Shan claims that the main focus for China this year in the aspect of foreign trade is to ensure the realization of Two Highers that is the increasing speed should be higher than the total increasing level of global trade, and higher than national economic growth level.

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