Foreign
Trade
http://english.mofcom.gov.cn/
Mainland China's Trade Growth
Falls Far Below Target
16:05
28.12.2014(updated 16:06 28.12.2014)
Growth
in China's foreign trade has dramatically slowed by more than half in 2014, a
report by the Ministry of Commerce said.
MOSCOW,
December 28 (Sputnik) – Mainland China's economy has presumably suffered
another serious blow as its foreign trade growth has slowed dramatically in
2014 to an estimated 3.5%, far below the 7.5% target, according to a report by
the nation's Ministry of Commerce.
Mainland
China's Ministry of Commerce published yesterday a report on the nation's
foreign trade, showing that volumes of trans-border goods circulation added
only 3.5% in 2014, as compared to the government's target of 7.5%. However,
soon after the initial publication, the report was replaced by an edited
version with the numbers erased, according to a Reuters report.
China's
dramatic economic slowdown is explained in large part by the decline in global
competitiveness of its manufactured goods as productions costs have increased
for China's facilities. These recent trade figures might be evidence of the
irrelevance of the export-based growth model for China, underlining an urge for
structural reform in the Communist nation.
Foreign
direct investment (FDI) was estimated at $120 bln in 2014, which corresponds to
the official target. Outbound investment flows were estimated in the reports at
the same level, but there might have been inconsistencies in the numbers as
Beijing has recently liberalized regulation on outward investment in a clear
attempt to boost volumes in capital flows. The total volume of China's outbound
investment reached $88.59 between January and November this year.
'Chinese
companies … have been experiencing difficulties in shoring up foreign currency
liquidity and raising funds for investments and operations abroad, which has
become a bottleneck for China's outbound investment to grow further,' Professor
Ding Zhijie of the Beijing-based University of International Business and
Economics told South China Morning Post.
In
case outward investment flow in December has really amounted at $30 bln, it
would be fair to say that the liberalization of investment regulation has
worked for China.
The
report also said retail sales growth reached 12%, in line with previous
forecasts.
© Sputnik
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