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High-tech trade boosts import-export business
By Jiang Wei (China Daily)
Updated: 2005-12-28 06:32

China's imports and exports of high-tech products are expected to exceed US$400 billion this year, according to the latest prediction from the Ministry of Commerce (MOFCOM).

According to statistics from the General Administration of Customs, the country's trade in high-tech products totalled US$371.7 billion in the first 11 months this year, up 26.9 per cent over the previous year.

The growth rate, which was higher than overall trade growth, has contributed enormously to the country's total two-way trade of US$1.28 trillion in the first 11 months.

Exports of high-tech products accounted for a record 28.4 per cent of China's total exports in the first 11 months. The ministry called it "a new breakthrough from the 27.9 per cent in 2004."

China's export of high-tech products is expected to account for 8 per cent of the world's total this year. There is expected to be a US$20 billion trade surplus in the sector this year, around one fifth of the country's total.

Imports of high-tech products rose 21.3 per cent year-on-year to US$177.1 billion from January to November, while exports grew nearly one third year-on-year to US$194.6 billion.

MOFCOM said the export of major products, such as integrated circuits, mobile phones and computers, rose in both quantity and price.

The United States topped China's export destination in this sector, closely followed by the European Union and Hong Kong.

However, the country still faces a number of problems in the high-tech sector, said Chang Xiaocun, director of the department for scientific and technological development and trade in technology at MOFCOM.

Chinese enterprises are still weak in innovation, with the upgrading of the domestic information and technology industry largely due to the introduction of foreign technologies.

Chang said some companies failed to improve their innovation capabilities.

China's high-tech industry, which is at the middle and low-end of the global sector, has only a few well-known brands.

"Some companies have started developing their own brands, but the added-value of these products is still low because of the lack of intellectual property rights," he said.

In order to address the problems, he suggested domestic companies should move upwards in the industrial chain.

"We expect that exports of firms' own brands and intellectual property will account for one quarter of total exports in this sector by 2010, he said.

(China Daily 12/28/2005 page9)



 
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