China’s foreign trade will expand by 20 per cent to $3.5 trillion next year despite a decline in export markets worldwide due to the downturn in the US and EU economies, according to a Ministry of Commerce report.
However, the rate of expansion will be lower than what was experienced in previous years.
Foreign trade growth will slow down in the remaining months of 2011 and in 2012 mainly due to “the complicated exterior environment”, the MoC said in its report.
The slackening pace of recovery of the world economy, increasing risk of a downturn and rising costs at home will pose risks to China’s foreign trade, it said.
However, the country will continue to boost trade growth, adjust its trade structure and expand imports to contribute to global trade balances, the ministry said.
China’s foreign trade fell 8.3 per cent from September to $297.95 billion in October. However, this was still a 21.6 per cent year-on-year rise, according to official data.
Exports fell 7.2 per cent month-on-month to $157.49 billion in October, while its imports dropped 9.5 per cent month-on-month to $140.46 billion.
The foreign trade outlook for China is pessimistic in light of global economic turmoil, rising labour and raw material costs and mounting pressure regarding appreciation of the yuan, the Vice Commerce Minister, Mr Zhong Shan, had said.