CHINA'S FOREIGN TRADE VOLUME TO DROP 15 PCT THIS YEAR

BY VINCENT LIM

BEIJING, Dec 10 (Bernama) -- China's foreign trade volume is expected to
drop by 15 per cent this year, with 17 per cent slide in exports against the
backdrop of US$190 billion in trade surplus, says Pei Changhong, an expert on
finance and trade.

Pei is however optimistic that exports would see a 15 per cent rise next
year.

"In fact, China's imports had increased but price drop had lowered the
import amount," he told a press conference after launching an economic Blue Book
at the Chinese Academy of Social Science.

Pei said though exports declined by 19 per cent between January and October,
export figures showed recovery trend from July to October, with US$100 billion
in monthly turnover.

China raised export tax rebate rate seven times last year, bolstering
exports significantly.

Pei said Asean had overtaken Japan and had become China's fourth largest
importer after the European Union, U.S. and Hong Kong during the Jan-Oct period.

He expected a bigger impact when the China-Asean Free Trade Area (CAFTA)
comes into force next year.

Currently, only 70 per cent of trade bertween China and Asean are zero-
tariff, and with CAFTA coming into effect next year, trade between both sides
will be 100 per cent zero-tariff.

Pei also predicted trade between China and its main trading partners would
grow next year.

China's exports to the US, Japan and Australia had dipped 16.1 per cent,
18.2 per cent and 11.4 per cent, respectively.

Manufactured goods was down 62.9 per cent, agricultural products (4 per
cent), plastic products (8.4 per cent), garments (10.9 per cent) and shoes (5.9
per cent).

Machinery and electrical appliances exports however recovered following new
orders secured at the Autumn Canton Fair.
-- BERNAMA