According to China Customs, although the country is witnessing a
constantly increasing trade surplus since August of this year, its
exports to the US are growing at a slower rate. In October, China's
export volume to the US stood at US$21 billion, far lower than the
US$ 21.39 billion in September. The year-on-year export growth is
also suffering a significant slowdown. From January to August,
China's exports to the US increased by 16.7 percent as against the
same period last year, while in September the figure was down to
15.8 percent and in October, it was further down to 15.5
percent.
Some specialists have pointed out that the subprime mortgage
crisis in US could badly affect China's foreign trade and the
adverse impact is now being observed in China's exports to the
US.
The Policy Research Department of the Ministry of Commerce
recently published a report, warning that China was at great risk
of export decline. Chinese enterprises will receive smaller amounts
of orders if they are primarily oriented toward the US market.
Wang Jian, secretary general of the China Society of
Macroeconomics, said that China's stock market, real estate market
and financial systems would not be severely affected by the crisis
since China hasn't opened its capital market. Furthermore, the RMB
has not been internationalized and the Chinese do not hold large
amounts of US house mortgage loan securities. However, he said that
the subprime crisis would still cast a shadow on the Chinese
economy because the country's economic growth was largely dependant
on foreign trade demands. In 2007 the US was the second largest
contributor to China's trade surplus.
For more details, please read the full story in Chinese. (
http://jjckb.xinhuanet.com/gnyw/2007-11/19/content_74408.htm)
(China.org.cn November 19, 2007)
