BUSINESS

China is third largest trading power

Source:PTI
January 12, 2005 12:13 IST
China's foreign trade in 2004 surged to a record $1.15 trillion to become the world's third largest trading power behind the United States and Germany.

The figure of $1.15 trillion showed an impressive 35.7 per cent surge in foreign trade last year, the ministry of commerce said.

Chinese exports last year zoomed to $593.4 billion, reflecting a year-on-year increase of 35.4 per cent. Imports rose 36 per cent to $561.4 billion

Despite running a trade deficit from January to August this year, the final figure showed that China enjoyed a trade surplus of $32 billion.

In 2003, China's trade surplus amounted to $25.5 billion. "China's imports rose sharply in the first half of the year," Prof. Fan Ying with Beijing's Foreign Affairs University said.

"Blistering fixed-asset investments in certain sectors such as steel, real estate and construction have demand for raw materials soaring. Prices for steel, rubber, plastics and cotton have also skyrocketed," she was quoted as saying by China Daily.

In April, the Chinese government launched efforts to cool down on overheated investment in selected sectors such as steel, aluminium and cement.

Credit tightening and scrutiny over approval of land deals soon cooled down the investment spree and placed the growth of imports at a reasonable level.

Source: PTI
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