Press briefing on foreign trade
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E-mail China.org.cn, May 20, 2014
China Daily:
The "Opinions" stressed that foreign trade development is not only conducive to stable economic growth and ensuring employment, but also in favor of the integration of the Chinese and international economies. Currently, China has become the world's biggest trading nation, so how do you evaluate this new position and role of foreign trade? Thank you.
Zhang Ji:
That is a good question. From my point of view, stable growth of foreign trade is in line with China's national conditions and should be a long-term strategy. It is essential to Chinese economic growth and the increase of people's welfare. Nowadays all countries across the world attach great importance to foreign trade and exports, including the United States, EU, Japan and South Korea.
As we all know, export, investment and consumption are the "three horses of troika" in economic growth. To those countries and places at different stages of development, these three "horses" feature separate logical order and importance.
For us, the economic growth still needs to rely on the simulation of investment, domestic demand, as well as foreign trade over a long period of time. During the 2013 Central Economic Work Conference, Chinese leaders vowed to help foreign trade playing a supporting role in the national economy. Foreign trade is an important part of our open economic system and a significant driving force behind the national economy.
Let me make it more specific. Firstly, it could promote stable development for our economy. From 1978 to 2013, China's foreign trade expanded from US$20.6 billion to US$4.16 trillion, with an average annual growth rate of 15.9 percent, and an average annual export growth of 16.3 percent. In recent years, the contribution rate of foreign trade to economic growth stands around 20 percent each year.
Secondly, it could expand employment. China is experiencing accelerated development in urbanization and industrialization, which sees hundreds of millions of rural laborers traveling to the nation's cities. In addition, millions of college graduates face job-hunts every year. It is estimated that foreign trade could provide more than 100 million job opportunities, including more than 40 million job vacancies in the processing trade.
Thirdly, it could ease constraints of energy resources. China lacks resources; its per capita hold of arable land, water, minerals, forests and energy is only half to one-tenth of the world average. Import could not only ensure the supply for the domestic demand, but also ease the bottleneck in resources for national economic development.
Fourthly, it could promote industrial development. Participating in the international competition is conducive for our enterprises to change their concepts, update their business philosophies and enhance competitiveness.
Fifthly, it could increase fiscal revenue. Tariffs and value-added tax collected by customs are closely related to the scale of foreign trade. In 2013, taxes on foreign trade accounted for 15 percent of the country's tax revenue. If we add the taxes of those foreign-owned enterprises closely related to foreign trade, tax revenue of the export-oriented economy accounted for one third of the country's total tax revenue.
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