Rapid growth was registered in foreign trade. Total value of imports and exports in 2003 reached $851.2 billion, up 37.1 percent over the previous year. The value of exports was $438.4 billion, up 34.6 percent, and the value of imports was $412.8 billion, up 39.9 percent. Fast growth was recorded in import and export with major trade partners.

Import of energy and raw materials increased substantially. In 2003, China imported 91.12 million tons of crude oil, up 31.3 percent over the previous year; 28.24 million tons of oil products, up 38.8 percent; 37.17 million tons of rolled steel, up 51.8 percent; 5.61 million tons of aluminum oxide, up 22.6 percent; and 148.13 million tons of iron sand and its refined ore, up 32.9 percent.

Foreign direct investment (FDI) maintained at fairly high level. The year 2003 witnessed the approval of establishment of 41,081 enterprises with FDI in China, up 20.2 percent over the previous year. The contracted foreign capital through FDI stood at $115.1 billion, up 39 percent, and the foreign capital actually utilized stood at $53.5 billion, up 1.4 percent. By the end of 2003, China had approved the establishment of 465,277 foreign-funded enterprises, involving $943.13 billion of contracted foreign capital and $501.47 billion of utilized foreign capital.

In terms of paid-in foreign capital, the top 10 investors in China in 2003 were Hong Kong, Virgin Islands, Japan, the Republic of Korea, the United States, Taiwan, Singapore, Western Samoa, Cayman Islands and Germany.

Economic and technological cooperation with foreign countries maintained good momentum. In 2003, China signed contracts on construction projects, labor services and design and consultation involving $20.9 billion, up 17 percent. The accomplished business volume through these projects was $17.2 billion, up 20.1 percent.

By the end of 2003, there had been approximately 1,500 enterprises qualified to contract projects overseas. The increasing number of large specialized engineering companies enhanced the international competitiveness of Chinese enterprises in overseas projects. The year 2002 saw 43 Chinese enterprises enter the world top 225 international contractors evaluated by the U.S. Engineering News Record (ENR).

China released statistical data regarding overseas direct investment for the first time. At the end of 2003, the Ministry of Commerce conducted for the first time statistics on China's overseas direct investment. The statistical data showed that by the end of 2002, the net amount of China's overseas direct investment (non-financial investment) totaled $29.92 billion, of which the net amount for 2002 stood at $2.7 billion. In 2002, Chinese enterprises operating overseas accomplished $77.2 billion in sales revenue.

More agreements on bilateral investment protection and avoiding double taxation were signed. To suit for the needs of opening to the outside world and attract foreign investment while protecting the interests of Chinese investors overseas, China has signed investment protection agreements with 106 countries. Now half of the agreements have taken effect. In addition, China has signed agreements with 81 countries on avoiding double taxation.

Foreign Trade and Economic Cooperation