Guangdong's EU exports climb
By Zheng Caixiong (China Business Weekly)
Updated: 2004-05-24 10:04

Guangdong's exports to the European Union (EU) reached more than US$7.5 billion in the first four months this year.

It represents an increase of 24.4 per cent from the corresponding period in 2003.

The southern Chinese province's imports from the EU grew even faster at 25.7 per cent to hit US$3.31 billion from January to April, according to statistics released by Guangdong Customs last week.

Guangdong's total trade volume with the EU came to US$10.88 billion in the first four months, up 24.8 per cent from last year, accounting for more than 10 per cent of the province's total.

Machinery and electronic products have played a bigger part in Guangdong's exports to the European bloc.

The province, China's biggest foreign trader, sold US$5.82 billion worth of machinery and electronic products to the EU from January to April, up year-on-year 28.2 per cent, which represented 77.5 per cent of the province's total.

Affected by trade protectionism, exports of garments and genuine leather products to the bloc dropped 20.2 per cent in the first four months.

"The EU is the third biggest trade partner for Guangdong Province, behind the Hong Kong Special Administrative Region and the United States, for the year so far," said Wu Sihai, an official with Guangdong Customs.

Wu attributed Premier Wen Jiabao's EU visit, which took place earlier this month, to the steady increase of foreign trade between Guangdong and the EU.

Wen's two-week-long EU visit has helped expand economic ties between the mainland and the EU, benefiting Guangdong's foreign trade industry, Wu told China Business Weekly.

Sustainable export growth to the EU this year has helped Guangdong achieve a foreign trade volume of US$102.22 billion in the first four months, up year-on-year 26.2 per cent.

The province's exports and imports stood at US$52.43 billion and US$49.79 billion, respectively, up 23.9 per cent and 28.8 per cent.

Guangdong's import and export volume represented 30.4 per cent of the country's total in the first four months.

Guangdong has been China's biggest foreign trader for more than two decades.

The province reached a foreign trade surplus of US$2.64 billion between January and April, while the country had a foreign trade deficit of US$10.76 billion during the period.

Guangdong's import volume reached US$14.32 billion in April, an increase of 33.7 per cent from the same time last year.

It was a record high in a single month in Guangdong's foreign trade history, Wu said.

Guangdong, which borders Hong Kong and Macao, mainly imported machinery and electronic products, technologies and high-tech products in the first four months.

Imports of agricultural products, steel, finished oil, automobiles and parts, and farm chemicals have also witnessed a big growth so far this year.

Wu attributed the province's import growth to Guangdong's sustainable economic development since the start of the year.

Guangdong, which has insufficient raw materials and natural resources, needs to import many products annually to support its economic development, Wu added.

Its general trade export volume came to US$10.61 billion while exports from the processing industry hit US$39.65 billion in the four months ending in April, up year-on-year 31.5 per cent and 21.3 per cent, respectively.

Guangdong's export volume from non-State sectors continued to enjoy strong growth.

The province's exports from foreign-funded firms and joint ventures came to US$32.9 billion, an increase of 27.2 per cent, representing 62.8 per cent of the province's total in the first four months.

And the export volume from the province's collective and private-run companies reached US$6.97 billion from January to April, up 53 per cent over 2003.

Exports from State-owned enterprises grew year-on-year by 1.5 per cent to US$12.55 billion, accounting for 23.9 per cent of the province's total.

Machinery and electronic products and high-tech products have been major foreign currency earners for Guangdong since the start of the year.

The export volume of machinery and electronic products reached US$35.18 billion in the first four months, up 28.9 per cent, accounting for 67.1 per cent of the province's total.

And exports of new and high-tech products came to US$17.81 billion, a year-on-year increase of 41.3 per cent.

Exports of furniture, plastic products, shoes, toys, agricultural products, travel bags, lights and other labour-intensive products also witnessed increases from January to April.

Shenzhen, Dongguan, Guangzhou, Foshan, Zhongshan, Zhuhai, Huizhou, Jiangmen, Shantou and Zhaoqing, in the prosperous Pearl River Delta region, have become the top 10 cities in Guangdong in terms of foreign trade.

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