| Mr. Fu Ziying Pointing out: China Should Free Herself From "Four Excessive Dependences" in Foreign Trade |
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| 2005-04-22 08:39 MOFCOM |
Fu Ziying, Assistant Minister of Commerce said recently that there were still problems that must not be overlooked in our scale of US$ 1 trillion foreign trade, these problems were embodied in 4 aspects:
First, excessive dependence on the traditional large markets of Japan, the US and EU. According to statistic, China’s exports to the US in 2004 amounted to US$124.9 billion, to Japan US$73.5 billion and to EU US$107.2 billion. Increase in China’s foreign trade remain depending on these traditional markets ,and the share of these markets is going up.
Second, excessive dependence on foreign investment enterprises.
Third, excessive dependence on expansion in quantity. China could export 6 billion pairs of shoes and 4.7 billion pieces of cloths each year, which consumed a great amount of limited resources. Expansion in quantity is a hidden risk to our trade, and also a fragile growth in trade.
Fourth, excessive dependence on processing trade. Processing trade is growing larger in all sectors of the economy and the harmfulness it has brought about is more revealing with each passing day. In Yangtz River Valley, 90% cities and the River system have been polluted seriously. In the Peal-River Delta, underground water is no longer drinkable.
Mr. Fu Ziying said that in 2004 our foreign trade increased by 35.7%, reaching US$1.1548 trillion. The fast increase could continue for another period of time based on theory of growth inertia. If we do not onthing transformation of growth pattern in the next 10 or 20 years, it would be impossible to keep the status of big trading country, we set a goal of US$ 2 billion in 2020. It would be impossible to reach that goal if we still base ourselves on expansion in quantity and traditional growth pattern.
Mr. Fu Ziying also said actual market capacity also required transformation of growth pattern. Number of shoes we made are 4 pairs per person and it is unpractical to reach 8 pairs. We work hard on quality, technology innovation, name brand and value added, and on brand strategy, products of proprietary brand in our US$500 billion exports are less than 10%, and share of name brands are even lower. In World's Top 100 Most Influential Brands, only one Haier is ours.
(Source: sub-site of China Chamber of Commerce for Import and Export of
Machinery and Electronic Products) |
