Thanks to the improved economic performance of China's major trading partners and the stability of the exchange rate of the yuan, China's foreign trade is gradually bottoming out and the external environment has been further improved. The good performance of exports will provide strong support for the GDP to achieve its growth target of 7.5 percent.
In August, China scored the best performance in foreign trade since May. There are two factors behind this: the economic recovery of China's major trading partners and the further improvement of environment of foreign trade.
Figures show the U.S. manufacturing PMI rose 0.3 percentage points again to 55.7 in August, hitting the record high since June 2011; the eurozone manufacturing PMI increased month-on-month and consumption of major European economies including Germany and Britain continued to increase. With the recovery of European and U.S. economy, foreign demand, the foundation for the growth of exports, will be further consolidated.
According to customs figures released on Sunday, bilateral trade between China and its major partners, except Japan, saw growth in August. Among this, the total volume between China and Europe increased by 3.2 percent to 51 billion U.S. dollars; the volume between China and the U.S. rose by 9.2 percent to 45.4 billion U.S. dollars, and that between China and the ASEAN countries grew by 13.3 percent to 36.6 U.S. dollars.
The stability of the exchange rate of the yuan also boosted the confidence of enterprises to expand overseas market.
In addition, a series of measures of "expanding domestic consumption and maintaining steady growth"' promoted China's imports.
In general, the trend of foreign trade between June and August shows China's foreign trade is gradually bottoming out. It is expected that the overall performance in the fourth quarter will be better than that in the third quarter and the annual export growth is expected to be around 9 percent, which will provide strong support for the GDP to achieve its growth target of 7.5 percent.
Exports in August up 7.2 percent
Sunday's customs figures show volume of exports and imports in August totaled 352.7 billion U.S. dollars, up 7.1 percent from the previous year excluding the exchange rate movement. Among this, the exports increased by 7.2 percent to 190.6 billion U.S. dollars, and the imports rose by 7 percent to 162 billion U.S. dollars. The surplus of foreign trade amounted to 28.5 billon U.S. dollars, up 8.4 percent and hitting record high of this year.
In August, the imports and exports of China's general trade was 192.3 billion U.S. dollars, an increase of 12.3 percent year-on year, accounting for 54.5 percent of total volume of foreign trade. Among this, exports stood at 97.5 billion U.S. dollars, up 10.3 percent and imports 94.8 billion U.S. dollars, up 14.4 percent.
In exports, electromechanical products saw steady growth and traditional labor-intensive products including textiles and garments kept growing. Exports of electromechanical products increased by 6.7 percent to 106.5 billion U.S. dollars, taking 55.9 percent of total export volume.