Opinion

2010, a year of recovery for China's foreign trade

(Xinhua)
Updated: 2010-10-05 11:44

The SIC report said imports growth would slow to about 19.3 percent on average for the rest of the year, with the lowest figure in the last quarter. Exports growth would be close to 16.3 percent on average, with the mix of products improved. The second half might add about $97.8 billion to the trade surplus, slightly more than the first half. Exports to established markets would be steady or slower, and the proportion of exports to new markets would continue to grow.

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"The environment for China's foreign trade has many unpredictable elements. Steadiness and perfection will be the key note of government policy in the second half," Deputy Commerce Minister Jiang Yaoping said at an international fair in Beijing in August.

The trial practice of settling cross-border trade with the Chinese currency could be expected to continue. The scope would be broadened for RMB currency swap agreements. Export credits would be increased and export insurance would have wider coverage. China would maintain a relatively stable RMB exchange rate. Other trade-related policies for financing and taxation would remain largely unchanged and efforts to facilitate trade operations would continue.

The principal guideline on foreign trade set out by the government in December 2009 was to "probe the market, adjust structure, and promote balance." Official media called for adherence to the principle and implementation of the measures without compromise.

In April the MOC released its "China's Foreign Trade Development Strategy in the Post-Crisis Era" report, which stated clearly the goal of making the country a strong trading power by 2030. Specific targets for the year 2020 were a total trade value of $5.3 trillion, breaking down to $4.3 trillion in goods and $1 trillion in services. China is expected to own a host of multinational corporations and world-class brands, and to play a leading role in setting up international trade rules and deciding on prices of commodities.

On the same occasion in April, Deputy Commerce Minister Zhong Shan said the financial crisis was a blow to foreign trade. It was also a push to altering trade modes. It would help China achieve this strategic goal.