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With the deterioration of Euro- pean debt crisis and the dim outlook of U.S. economy, the Chinese government will accelerate the diversification of its trade situation.
On January 10, 2012, Vice Minister of Commerce Zhong Shan stated that the Ministry of Commerce of China would be committed to developing more diversified overseas markets in 2012 and reform the unbalance among the dependence on foreign trade of different regions in China.
According to Zhong Shan, the Ministry of Commerce has already chosen 30 countries as the key markets where breakthroughs of multiplied trade situation are expected. “Our standard includes resources, population, current market share and strategic status,” Zhong Shan said. “I hope we can ally with the China Council for the Promotion of International Trade to increase the bilateral trades with these countries by 3 percent by 2015.”
Zhong Shan did not list the detailed names of these 30 countries. But experts guessed that India, Arabian countries and other states with abundant resources and important strategic positions were all included in this list.
Foreign trade expert Yuan Gangming pointed that the 30 key trade partners must have the following qualifications. First, they should have important complementary; i.e. China can import many resources from these countries and they can buy a lot of products from China. Secondly, these countries must have great potential of economic growth – their economic power might not be as great as the United States, Japan or Germany, but their economic growth rate could be maintained at a high level in the future. Third, these countries have abundant market sources and important status in the world.
Zhong Shan did not hold an optimistic opinion for the foreign trade situation this year.“The demand of the international market is not sufficient and the international competition is more furious. This year, China will face a more serious foreign trade situation,” he said.
Against this background, the Ministry is said to plan to work out new stimulus measures to keep the stable growth of export.
The strategy of diversification which has been under planning for long will see a fast progress.
In the Sino-Arabian Economy and Trade Forum held in September 2010, Wang Shouwen, director of the Foreign Trade Department of the Ministry of Commerce, said that the ministry was studying how to establish key developing countries as the strategic core markets for the goal of market diversification. In the Autumn Trade Session in October 2011, the Ministry of Commerce once held two conferences to talk about the strategy of diversified domestic and international markets. All the directors of foreign trade-related department in the central and local governments were present in the conferences to discuss the list of core markets.
On January 9, 2011, Zhong Shan quoted the latest statistical data, saying that the foreign trade of China was now too much dependent on the developed countries and the coastal areas of China. He thought that changing the unbalanced structure could not only avoid the problems of export brought by the worsening economic situation in Europe and the United States, but also is good for China to shift from a big trade country to a powerful one.
“In 2010, trade volume with Europe, the United States, Japan, Hong Kong and Korea accounted for 53.7% of the total imports and exports volume of China, of which the imports volume from these countries and regions took 63.4% and 42.7% export came from these countries and regions. However, the developing countries contributed 37% of the imports and exports volume, or 37.7% of export and 43% of import. 90% of the foreign trade volume of China came from the eastern coastal areas which contributed to 89.9% of the export and 90.1% of the import.”
Zhong Shan mentioned the possible cooperation between the Ministry of Commerce and the China Council for the Promotion of Foreign Trade which aimed to improve the trade volume between China and the target countries by 3 percent by 2015. In addition, “speeding up the transformation and upgrade of foreign trade tools and the construction of foreign trade and distribution platform” are manifests of the diversified strategies of the Chinese foreign trade policies.
“A 3% increase is not easy to be realized. Presently, the trade volume between China and the other developing countries was 3.6 trillion U.S. dollars. If the goal is realized, the trade volume will be 5 trillion U.S. dollars by 2015.”
For example, the present annual trade volume between China and its neighbor India is 70 billion U.S. dollars. “The two countries have 2.67 billion people, but their bilateral trade is even less than the Sino-Singaporean trade volume which is now 100 billion U.S. dollars per year or the one between China and the Netherlands. Therefore the potential is huge.”
The trade volume between China and Arabian countries in 2011 amounted to 245.4 billion U.S. dollars. Presently, China imports petroleum, chemical materials, chemical fertilizers, steel, aluminum, lightening devices and marble products from Arabian countries. Meanwhile, China exports home appliances, automotives and machines to Arabian countries.
During the “11th Five-Year Period” (2006-2010), the bilateral trade between China and Arabian countries had a 27% increase every year, higher than the average 16% increase of China’s foreign trade. But presently the bilateral trade between China and Arabian countries only contributed to 5% of the total trade volume of China, meaning that it has great potential as well.
On January 10, 2012, Vice Minister of Commerce Zhong Shan stated that the Ministry of Commerce of China would be committed to developing more diversified overseas markets in 2012 and reform the unbalance among the dependence on foreign trade of different regions in China.
According to Zhong Shan, the Ministry of Commerce has already chosen 30 countries as the key markets where breakthroughs of multiplied trade situation are expected. “Our standard includes resources, population, current market share and strategic status,” Zhong Shan said. “I hope we can ally with the China Council for the Promotion of International Trade to increase the bilateral trades with these countries by 3 percent by 2015.”
Zhong Shan did not list the detailed names of these 30 countries. But experts guessed that India, Arabian countries and other states with abundant resources and important strategic positions were all included in this list.
Foreign trade expert Yuan Gangming pointed that the 30 key trade partners must have the following qualifications. First, they should have important complementary; i.e. China can import many resources from these countries and they can buy a lot of products from China. Secondly, these countries must have great potential of economic growth – their economic power might not be as great as the United States, Japan or Germany, but their economic growth rate could be maintained at a high level in the future. Third, these countries have abundant market sources and important status in the world.
Zhong Shan did not hold an optimistic opinion for the foreign trade situation this year.“The demand of the international market is not sufficient and the international competition is more furious. This year, China will face a more serious foreign trade situation,” he said.
Against this background, the Ministry is said to plan to work out new stimulus measures to keep the stable growth of export.
The strategy of diversification which has been under planning for long will see a fast progress.
In the Sino-Arabian Economy and Trade Forum held in September 2010, Wang Shouwen, director of the Foreign Trade Department of the Ministry of Commerce, said that the ministry was studying how to establish key developing countries as the strategic core markets for the goal of market diversification. In the Autumn Trade Session in October 2011, the Ministry of Commerce once held two conferences to talk about the strategy of diversified domestic and international markets. All the directors of foreign trade-related department in the central and local governments were present in the conferences to discuss the list of core markets.
On January 9, 2011, Zhong Shan quoted the latest statistical data, saying that the foreign trade of China was now too much dependent on the developed countries and the coastal areas of China. He thought that changing the unbalanced structure could not only avoid the problems of export brought by the worsening economic situation in Europe and the United States, but also is good for China to shift from a big trade country to a powerful one.
“In 2010, trade volume with Europe, the United States, Japan, Hong Kong and Korea accounted for 53.7% of the total imports and exports volume of China, of which the imports volume from these countries and regions took 63.4% and 42.7% export came from these countries and regions. However, the developing countries contributed 37% of the imports and exports volume, or 37.7% of export and 43% of import. 90% of the foreign trade volume of China came from the eastern coastal areas which contributed to 89.9% of the export and 90.1% of the import.”
Zhong Shan mentioned the possible cooperation between the Ministry of Commerce and the China Council for the Promotion of Foreign Trade which aimed to improve the trade volume between China and the target countries by 3 percent by 2015. In addition, “speeding up the transformation and upgrade of foreign trade tools and the construction of foreign trade and distribution platform” are manifests of the diversified strategies of the Chinese foreign trade policies.
“A 3% increase is not easy to be realized. Presently, the trade volume between China and the other developing countries was 3.6 trillion U.S. dollars. If the goal is realized, the trade volume will be 5 trillion U.S. dollars by 2015.”
For example, the present annual trade volume between China and its neighbor India is 70 billion U.S. dollars. “The two countries have 2.67 billion people, but their bilateral trade is even less than the Sino-Singaporean trade volume which is now 100 billion U.S. dollars per year or the one between China and the Netherlands. Therefore the potential is huge.”
The trade volume between China and Arabian countries in 2011 amounted to 245.4 billion U.S. dollars. Presently, China imports petroleum, chemical materials, chemical fertilizers, steel, aluminum, lightening devices and marble products from Arabian countries. Meanwhile, China exports home appliances, automotives and machines to Arabian countries.
During the “11th Five-Year Period” (2006-2010), the bilateral trade between China and Arabian countries had a 27% increase every year, higher than the average 16% increase of China’s foreign trade. But presently the bilateral trade between China and Arabian countries only contributed to 5% of the total trade volume of China, meaning that it has great potential as well.