View

Export pattern needs change

Updated: 2010-12-29 10:06

The Ministry of Commerce has said foreign trade volume is expected to hit a record $2.9 trillion yuan ($437.62 billion) this year, a year-on-year growth of 31.5 percent. But despite that, the government should review the recovery in foreign trade, says an article in People's Daily. Excerpts:

The International Monetary Fund has said the global economic growth this year will be about 4.8 percent.

A strong global economic recovery will boost China's exports, and its economic growth and expanding domestic demand will propel its imports.

China's trade surplus is decreasing thanks to its robust imports. In recent times, China's imports from its major trade partners such as the United States and Japan have risen much faster than its exports to these countries, and helped bring some balance in global trade.

But some countries use China's trade surplus with them as an excuse to ignite trade disputes. Such moves can hardly help maintain a healthy trade balance between China and its trade partners in the future.

China should transform the growth pattern of its exports, which relies heavily on low-cost products. Statistics show that developed countries are still the top destination for China's exports.

To diversify its exports and improve the value and quality of its products, China needs to reorient its exports industry toward innovation and value addition.

Domestic enterprises should be encouraged to develop globally and better use international resources.

But the recovery of China's exports industry could leave domestic enterprises dependent on the old growth pattern and thus hinder the strategic restructuring of the foreign trade sector. This is what China should be cautious against.