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Monday, October 31, 2005

BBC NEWS | Business | Chinese trade surplus set to soar

BBC NEWS | Business | Chinese trade surplus set to soar Chinese trade surplus set to soar
China's trade surplus is set to rise to a record $90bn (£50.5bn) in 2005, according to government forecasts, but export growth may slow next year.

China enjoyed a positive trade balance of $68bn in the first nine months of 2005 alone, the Commerce Ministry said, compared to a $32bn surplus in 2004.

Exports remain exceptionally strong, with 26% growth expected this year.

However, officials warned growth could slow next year due to increased protectionism in many markets.

Textile limits

According to government figures, curbs on Chinese exports by trading partners has reduced total trade by $8.9bn so far this year.

It is difficult to keep up such high growth due to the limitations of global markets and also trade protectionism
Chinese Academy of International Trade and Economic Co-operation

The US and Europe have both imposed limits on Chinese textile imports, which have ballooned after global quotas were scrapped at the start of the year.

They argue that their own manufacturers are being hurt by China's ability to produce mass goods cheaply.

The US and China have failed to agree a deal to regulate future imports amid calls by some US politicians for even greater restrictions on Chinese clothing sales.

Total Chinese exports are forecast to hit $745bn this year, according to the latest figures from the Chinese Academy of International Trade and Economic Co-operation, a Commerce Ministry think-tank.

Imports are projected to rise 18% to $655bn.

Slowing down

Strong export growth has been the backbone of China's economic boom.

Total economic output has exceeded 9% in each of the last nine quarters.

However, officials believe the rate of export growth will slow next year.

"China's exports have maintained fast growth for four successive years and it is difficult to keep up such high growth due to the limitations of global markets and also trade protectionism," the Chinese Academy said in a statement.

"China is the biggest victim of trade protectionism. Such a trend won't show a fundamental change next year."
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