Business
April 11, 2005
Foreign trade becomes major driving force of China's economy
China's imports and exports are believed to have grown 15 percent 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 13.5 billion US dollars, the report estimates. Net exports have become a major driving force to China's national economy.
In 2004, China's foreign trade grew rapidly. The country's trade volume totaled 1.1 trillion US dollars, 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 156.2 billion US dollars in the first quarter this year and import volume was 142.76 billion US dollars, the State Information Center estimates.
In the same period last year, China's foreign trade showed a deficit of 8.44 billion US dollars. 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 1978to 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.
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