MOFCOM Department of Foreign Trade Comments on China’s Foreign Trade Situation in January-May 2017

Source: Ministry of Commerce of thePeople’s Republic of China

According to the statistics of ChinaCustoms, in January-May 2017, China's import and export volume reached 10.76trillion yuan, with an increase of 19.8% year on year (the same below). Amongthese, the export was 5.88 trillion yuan, with an increase of 14.8% and theimport was 4.88 trillion yuan, with an increase of 26.5%; the trade surplus was993.97 billion yuan, narrowing 21.1%. The import and export realized a rapiddevelopment, the structure was further optimized, the structure optimizationwas accelerated, and the turnaround momentum was further consolidated. The Headof the MOFCOM Department of Foreign Trade pointed out in January-May 2017China's foreign trade mainly showed the following features:

From the perspective of commoditystructure, the export volume of mechanical and electrical products was 3.37trillion yuan, with an increase of 14.2%, accounting for 57.3%, remaining thesame as in the same period last year. Among these, the growth of automobile,ship, mobile and computer and its component was 32.1%, 27.2%, 16.0% and 14.6%respectively. The export of seven traditional labor-intensive industries suchas textile and garment maintained a rapid growth, up 12.8% (the export volumewas 1.20 trillion yuan).

From the perspective of business subjects,the export amount of private enterprises reached 2.75 trillion yuan, with anincrease of 18.1%, accounting for 46.7%, 1.3 percentage points higher than inthe same period last year, and remaining as the first business subject ofexport enterprises.

From the perspective of trading mode, thegeneral imports and exports amount reached 6.11 trillion yuan, with an increaseof 21.0%, accounting for 56.8% of the gross national foreign trade, 0.6%percentage points higher than in the same period last year. New formats such ascross-border e-commerce and market procurement trade continue to maintain arapid development.

From the perspective of national market,our imports from and exports to the top ten trade partners such as EU, theUnited State and the ASEAN increased 18.9%, and those from and to traditionalmarkets such as the United States, EU and Japan went up 18.3%, 14.6% and 12.8%respectively. The exports to the countries along the line of the "Belt andRoad" such as Russia, India, Singapore and Indonesia have increasedrapidly, the growth rate reaching 29.5%, 24.7%, 15.8% and 16.9% respectively.

In January-May, the major reasons forChina's rapidly increasing import and export are:

Firstly, policy effect appearedprogressively. In recent years, the Central Party Committee and the StateCouncil have introduced a series of policy documents promoting foreign tradedevelopment. MOFCOM, together with all departments and local governments,focused on the implementation of policy with unprecedented strength. Thebusiness environment was constantly improved, burdens were tangibly eased,assistance for enterprises were visibly provided, vitality of the marketsubject obtained effective motivation and policy effect further appeared.

Secondly, international market recoveredslowly. The World Economic Outlook released by the IMF in April improves thepredicted value of global economic growth would rise to 3.5% from 3.4% inJanuary. Among this, the growth of developed economies accelerates to 2.0% from1.7% in 2016, 0.1 percentage points higher than what was last predicted. Thegrowth of developing and emerging economies accelerate to 4.5% from 4.1% in2016.

Thirdly, enterprises' structure adjustmentand power conversion were accelerated. A large batch of enterprises generatedpower from the supply side, accelerated structure adjustment and transformationand upgrading, strived to cultivate new foreign trade competitive advantagescentering on technology, brand, quality, service and standard. The innovativecapacity of enterprises was strengthened and the power conversion wasaccelerated.

Fourthly, the rising import volume andprice of bulk commodity drove China's rapid development of import and export.The import prices of 10 bulk commodities such as crude oil, iron ore, naturalgas, steel and copper concentrate (accounting for 24.3% of China's importvolume at the same period) increased 7.7% to 90.8%. The import volume increased2.4%-29.6%, driving 11.7 percentage points of import growth.


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Copyright:ChinaSourcing Summit

Record Number:2141234