Trade surplus rebounds in April

(Xinhua)
Updated: 2007-05-11 14:20

Mei Xinyu, a trade expert with the Ministry of Commerce, attributed the robust exports to the brisk world market demand. Given that a lion's share of China's exports are made by foreign-invested processing companies, their production won't be easily affected by the rising yuan or changing production costs.

"Many of the engines of China's exports such as textile, clothing and steel are facing an overcapacity on home turf, which means companies of these sectors must expand their market aboard to survive," said Zhang Yansheng.

As a large percentage of China's exports are lower-value-added products whose demand are less sensitive to the price fluctuations, it is impossible to reduce the massive exports in a short period of time, he said.

"But there is a critical point to break the substantial expanding momentum in exports. It all depends on how far local manufacturers can go with a rising production cost," Zhang said.

Some economists have argued that the sharp rise in February and deep slump in March were caused by exporters delivering March orders in February in order to avoid losing out on export tax rebates.

The administration seemed optimistic of bringing down the politically sensitive surplus which has affected China's relations with a few trade partners.

It said that the newly added surplus in April which rose by 60.8 percent from US$10.5 billion last April has slowed down by 37.5 percentage points from the first quarter.
 123  

(For more biz stories, please visit Industry Updates)