Reuters | BEIJING | Mon Dec 28, 2009 | 4:02pm IST
Beijing will not relax its efforts to sell Chinese products overseas in 2010 and seek a bigger share in the global market, China’s vice trade minister said on Sunday. China, which may have replaced Germany to be the world’s largest exporter in 2009, is a “big trading nation” but not yet, a “powerful trading nation,” vice commerce Minister Zhong Shan said. “China’s exports in 2010 will grow, and there’s no doubt about that,” Zhong said, declining to provide detailed forecasts. China’s exports were hit hard by the global financial turmoil, falling 18.8 percent in the first 11 months from a year earlier. But the market share for Chinese products has increased in 2009 as sales from other countries have fallen even more deeply, Zhong told a forum at the University of International Business and Economics in Beijing.
Other countries have blamed China’s unofficial policy of repegging the Yuan to the dollar since the summer of 2008 for making its products artificially competitive. China will feel pressure on its Yuan policy but will maintain “basic stability” Zhong said, in a reiteration of long-standing government policy. He said export growth is vital for China to drive economic growth and create jobs Continue reading
Reuters | Beijing | Wed Nov 4 | 04:40 PM
With its external surplus melting like a snowman in the sun, China is likely to give short shrift to any attempts to blame it for the woes of the world economy when finance ministers meet in Scotland at the end of the week. Beijing feels aggrieved that critics are dwelling on its rigid exchange rate, saying it steals jobs from others, and are not giving enough credit for its aggressive monetary and fiscal stimulus, which is sucking in imports from around the globe. “I think China has done a lot of work and made a great contribution to helping the world economy weather the financial crisis. Keeping the Yuan stable is part of that,” said Zhang Xiaoji, a researcher with the Development Research Centre (DRC), a think-tank under the State Council, China’s cabinet. China let the Yuan rise 21 percent against the dollar between July 2005 and July 2008 before effectively repegging the currency to help its exporters cope with a slump in global demand. Because of the dollar’s fall, the Yuan’s nominal effective exchange rate has depreciated 7.6 percent since its peak early this year, the World Bank said in a report issued on Wednesday. Yet the bank forecast that China’s current account surplus would fall to 5.8 percent of GDP this year, and then to 4.1 percent in 2010, from 9.8 percent last year and a peak of 11.0 percent in 2007.
Drooping demand in rich countries is, of course, part of the explanation. But China’s reflation package has succeeded in generating domestic demand that has boosted imports from a wide range of trading partners, not just commodity exporters such as Australia. China’s imports from Germany, for instance, are back to pre-crisis levels, according to Goldman Sachs. As a result, net exports reduced Chinese GDP Continue reading
nvs | 11/10/09 | 7:20 pm GMT+5.30
Till recently Trade Disputes between China and the US were on imports of movies, music, poultry paper and tyres. Lately the dispute has been raging on imports of steel pipes. Both the countries have been accusing each other as taking ‘protectionist’ measures for the safety of their respective markets. The US steel manufacturers complained their Government that the Chinese steel manufacturers have sold steel pipes at prices lower than their manufacturing cost. Such a practice in International Trade is called ‘Dumping’. In that case the opposite country can take anti-dumping measures like increasing import tariffs. The American manufacturers also accused China of providing massive subsidies to their steel manufacturers to help them sell their products at lower prices through which they are gaining unfair advantage. Hence they requested their Government to place tariffs on Chinese imports to offset the effect of subsidies. With this the US Department of Commerce last week launched an investigation to ascertain whether Chinese mils are dumping their steel pipes on the US market or they are benefitted with unfair subsidies. Continue reading