Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Trade Surplus Growth Set to Slow
Adjust font size:

Growth in China's trade surplus will ease in the second half of this year as the central government's measures to curb exports begin to have an impact, a senior trade official said yesterday.


The surplus soared to US$112.5 billion in the first half of this year, up 84 percent from a year earlier. The June surplus hit a record US$26.9 billion.


The remarkable increase resulted partly from enterprises rushing to export as much as they could ahead of July 1, when the value-added tax rebate was either scrapped or reduced as part of efforts to trim the surplus, Ministry of Commerce spokesman Wang Xinpei said.


"This factor (the export rush) will fade out in the second half of this year," Wang said.


In addition, other measures to curb exports will help slow the growth in surplus, he added.


The government has adopted various methods to narrow the surplus, such as levying export taxes and encouraging imports of high-tech products.


However, many economists predict it will take time before a significant change can be seen.


"We have to wait at least three months to see any effect, and possibly longer, since many firms will continue to manufacture and export given their capacity is already in place," said Stephen Green, an economist with Standard Chartered Bank in Shanghai. He expects the full-year surplus to set a record this year.


"We do not expect to see any major change in the overall picture in the near future as the dampening effect of the tax rebate adjustment is likely to be offset by stronger global industrial production momentum," said Liang Hong, an economist with Goldman Sachs' Asia Economics Research Group.


In another development, technical barriers erected by trade partners cost China as much as US$75.8 billion last year and over 15 percent of exporters were affected, according to research by the Ministry of Commerce.


The barriers refer to regulations, standards or procedures for assessing imports. Compared to traditional trade barriers such as tariff and import quotas, they have been adopted more frequently in recent years.


(China Daily July 12, 2007)


Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
Related Stories
Trade Surplus Reaches New Peak in June
Imports to Hit US$1 Trillion by 2010
Trade Surplus Extends Growth
US$4.3b Deal Clinched to Narrow Trade Gap with US
Trade Surplus Large but Slowing in 2007: Report

July 18 Beijing
International Copyright Forum
July 19 Shanghai
Shanghai Finance Forum
Sept. 6 – 8 Dalian
Summer Davos Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback
Copyright © China.org.cn. All Rights Reserved E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP证 040089号