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China's imports, exports drop 10.7% in Oct  (China Daily 2009-11)

Foreign Trade in December 2008: China has posted a trade surplus of $US39 billion in December, the second-highest ever, on a steep drop in imports, according to figures published in state media. December exports totaled $US111.2 billion ($A163.87 billion), a decline of 2.8 per cent from a year earlier, the China Daily newspaper said on Tuesday, citing customs statistics. Imports last month stood at $US72.2 billion ($A106.4 billion), down 21.3 per cent from a year ago, the paper said.

China ranks 2nd with 8.8% of world's exports by 2007. Xinhua News

China begins 150% special export tariff on fertilizers - BEIJING, Sept. 1 (Xinhua) -- China on Monday launched a 150 percent special export tariff on nitrogenous fertilizer and synthetic ammonia, a move to satisfy domestic demand, according tothe customs tariff commission (CTC) of the State Council.

The commission said the special tariff on the two products would last through the end of this year. The previous tariff for the two fertilizers was 100 percent.

The commission also said the 100 percent special export tariff on other fertilizers has been extended to the end of this year.

On April 20, the country started collecting a 100-percent special tariff (a tariff yet again levied on export fertilizers in addition to the common tariff rate) on all fertilizer exports and some fertilizer-related raw materials through Sept. 30, a period of high domestic demand. 2008-09-01 20:12:44


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China loses WTO car parts case against US

GENEVA (AFP) — July 17, 2008 - The World Trade Organisation on Friday said it had ruled against China in a complaint brought by the United States over Chinese import tariffs on car parts.

The WTO's dispute settlement panel urged China to bring what it termed "inconsistent measures ... into conformity with its obligations."

Beijing has a minimum local content requirement of 60 percent for home produced cars. If this level is exceeded, it then levies the same tariff on the vehicle as it would if it were imported completely built.

China has said the rules aim to prevent tax evasion by companies that import whole cars as spare parts to avoid higher tariff rates.

But the United States, as well as co-complainants Canada and the European Union, argued that the measure violated China's WTO accession agreement, which pledged a progressive opening up of Chinese markets.

In February, sources close to the case said that China had lost, but an official judgement was issued only on Friday.

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The major challenges Americans are facing in doing business in China:

  • Permission to enter market (38%);

  • Bankruptcy (42%)

  • Transparency (43%)

  • Human Resources (56%) 

  • Red-tape & Bureaucracy (67%)

Sources: White Paper of 2000 issued by China American Merchants Association

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China cuts, cancels export tariffs to boost exports  June 23, 2009  -- China will abolish export duties on some grains and industrial products and cut the duties for chemical fertilizers and nonferrous metals from July 1 to promote exports, the Ministry of Finance said in a statement Monday.

The Customs Tariff Commission of the State Council will eliminate the export tariffs for wheat, rice, soybeans, vitriol and steel wire. Grains are now subject to a 3-percent export levy.

Special export tariffs of 50 percent on chemical fertilizer and fertilizer raw materials including yellow phosphorus, phosphate rock and phosphoric acid are expected to be canceled. Export duties for some nonferrous metals including molybdenum, tungsten and indium will be halved to 5 percent, the statement said.

The move follows several increases in export tax rebates to support overseas sales amid the global downturn. Since last August, China has increased export tax rebates seven times.

China's exports fell 26.4 percent in May from a year ago to 88.76 billion U.S. dollars, following a decline of 22.6 percent in April. Exports in the five months to May totaled 426.14 billion U.S. dollars, down 21.8 percent.  (Xinhua News)  

China Trade Show Related News:

  • Small commodities fair to lure 110,000 businessmen Oct. 21 (Xinhua) -- Over 110,000 domestic and foreign business people from 130 countries and regions will display and sell products during a trade fair from Monday to Friday to in Yiwu City, east China's Zhejiang Province. More than 200,000 kinds of small commodities produced by over 2,565 domestic and overseas factories are on display at the 2007 China Yiwu International Small Commodities Exposition, the fair organizers said on Sunday. There are 4,500 booths for the exhibitors, covering a floor area of 90,000 square meters, they said.  A series of lectures, forums and presentations will be held as part of the international commodities fair, which was launched in 1995.Last year, the fair reached a total trade value of 9.45 billion yuan (1.26 billion U.S. dollars), including 780 million U.S. dollars export. Yiwu has turned into Asia's largest marketplace of small commodities ranging from needles and buttons to lighters and playing cards, since China launched its reform and opening drive 29 years ago. Zhejiang, one of the fastest developed provinces in the country, is home to many factories producing small commodities in large quantities 
  • Macao Int'l Trade and Investment Fair opens Oct. 18  -- The Macao International Trade and Investment Fair (MIF) opened here Thursday, attracting 236 commerce and trade delegations from 50 countries and regions. The fair, sponsored by the Macao Trade and Investment Promotion Institute (MTIPI), boasts an event for over 30 seminars, conferences and product promotion programs. It features a 18,000-square-meter exhibition area and 889 exhibition booths. The four-day annual event has become an important trade platform for enterprises from the Chinese mainland, European and Portuguese-speaking countries, the organizers said. (Xinhua)

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Four major obstacles to Chinese foreign trade
People's Daily Online June 27, 2006 - The period of the 11th five-year plan is very important for China. According to Zhang Lichuan, a Director with the Statistical Department of General Administration of Customs of China, to be a recognized trading power China must commit to the search for solutions to emerging issues in foreign trade. She also said that the Chinese government should focus on four major hurdles in the field of foreign trade.

  • Firstly, China should deal with pressure from international markets that are gradually becoming saturated. In 2005, the volume of Chinese exports ranked third in the world, making up 7.3 per cent of the world's total volume, 3.4 percentage points up from 2000. In 2005, ranked among the world's top ten countries in terms of export volume, China is growing much faster than the other nine countries. The growth rate of Chinese exports exceeds the world's average rate of 13 per cent. As a result, the growth of Chinese exports is increasingly subjected to international markets.
  • Secondly, the cost of Chinese exports is increasing, partly because of the higher cost of labor and environmental protection. Cheap labor is the foundation of the Chinese economy. However, the worker shortage apparent in some areas of China indicates that it is inappropriate to sacrifice workers' welfare for the sake of low export prices and the Chinese government should change the situation. In recent years, China has tightened restrictions on the export of products that consume a lot of energy, create a lot of pollution or use a lot of resources in their production. Limited resources and the environment have become major obstacles to the growth of Chinese exports.
  • Thirdly, increasing international trade protection has caused China to stumble into difficult territory. China has been involved in the world's largest number of anti-dumping cases in recent years.
  • Finally, the trade imbalance between China and other countries is getting worse. As the Renminbi appreciates, Chinese enterprises will face greater exchange risks in import-export trade. Increasing pressures from the appreciating Renminbi will create new requirements and challenges for Chinese enterprises engaged in import-export trade.

Comment: A game not really worth the candle!
People's Daily, April 24, 2007 - The United States has filed two lawsuits against China at the World Trade Organization (WTO) over intellectual property infringement, charging it with rampant piracy and restricting American movies and music products and books from entering into the country. This is the third time the Bush administration, facing Congressional pressure in the sphere of trade, has lodged complaints against China and imposed pressure upon it. This US move is not wise, and will eventually be a pure game not really worth the candle, and even American media and relevant researchers hold such a viewpoint. (Click for full article.)

China to import 355 mln tons of iron ore next year
Xinhua, Dec. 30, 2006 -  China will import the bulk of the world's increasing demand for iron ore next year, with imports expected to rise by 30 million tons to 355 million tons in 2007,an industry report says. The China Iron and Steel Association (CSIA) predicted that international demand and supply would remain stable next year. China's largest steelmaker, the Baosteel Group Corp, has settled the iron ore price for 2007, at a 9.5 percent increase from last year, with the major iron ore producers, including Brazilian Companhia Vale do Rio Doce (CVRD). (Full report)

China to adjust export tax rebate rates from tomorrow
China will adjust some of its export tax rebate rates from tomorrow, aiming to achieve greater trade balance, according to a joint statement by five government agencies. (Click for full report)

Monthly trade surplus hits new high
Nov. 8, 2006 - China said Wednesday its trade surplus hit a record monthly high in October as exports soared and import growth fell amid government efforts to cool off the sizzling economy. The surplus in October jumped to US$23.8 billion, up 27 percent from the previous high of US$18.8 billion in August, according to the General Administration of Customs. That raised China's total surplus for the first 10 months of the year to US$133.6 billion, already exceeding the US$102 billion surplus for all of 2005, the agency said. China's growing trade gap has fueled demands by Washington and other trading partners for Beijing to raise the value of its currency, the yuan. October was the fifth time this year that the monthly trade surplus has reached a new record high. The surplus set records in May, June, July and August before briefly dropping back to US$15.3 billion in September. (Click for full report)

Sino-Japanese trade hits new record
Aug. 29, 2006 - Japan's trade with China jumped almost 10% in the six months to June, setting a record high for a seventh straight year despite diplomatic frictions. Total trade between the two Asian economies came to 99.2 billion dollars in the first-half period, up 9.9 percent from a year-earlier, the Japan External Trade Organization (JETRO) reported Monday. (Click for full report)

China's technology imports up 45.2%
China's technology imports reached 17.95 billion U.S. dollars in the first nine months of this year, up 45.2 percent over last year, reported the Ministry of Commerce (MOC) on Monday. Contracts for copyright licenses constitute the largest part of the total contracted fund, with a year-on-year growth of 57.5 percent. The European Union (EU) is the largest technology exporter to China with a contracted value of 7.54 billion U.S. dollars, up 32 percent. (Click for full report)

August trade surplus hits record
China Daily, Sep. 12, 2006 - China posted a record trade surplus of US$18.8 billion in August, far exceeding the previous peak of US$14.6 billion the previous month, according to the General Administration of Customs. The August surplus, the fourth consecutive monthly record, was driven by a 32.8 per cent jump in exports from a year earlier, which outpaced the 24.6 per cent rise in imports. August exports recorded US$90.8 billion while imports were US$72 billion. China posted a trade surplus of US$94.65 billion in the first eight months, up 57 per cent over the same period last year. Exports rose nearly 26 per cent to about US$600 billion while imports reached US$505 billion, an increase of 21.6 per cent.

China Raises Foreign-Currency Ratio to Ease Pressure (Update2)
Aug. 30, 2006 - (Bloomberg) -- China ordered lenders to increase the amount of foreign-currency deposits they hold at the central bank for the first time since 2004, to curb investments boom and ease pressure on the yuan to strengthen. (Click for full report)

China relaxes QFII rules to attract more overseas investment
BEIJING, Aug. 25 (Xinhua) -- China announced Friday its revised rules on qualified foreign institutional investors (QFII) in a bid to attract more non-speculative overseas investment for its stock markets. Under the new rules, more overseas foreign institutional investors will be eligible as qualified investors in the Chinese A-share markets as the threshold for QFII was slashed significantly. The China Securities Regulatory Commission, which made public the rules in cooperation with the country's foreign exchange watchdog and the central bank, said it will also increase the quota of foreign investment in the Chinese stock markets.





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