Ministry Of Commerce: The Trade Surplus Will Drop Sharply This Year.

Ministry of Commerce, Yao Jian, yesterday at a regular press conference, said that from the first 4 months of this year, the trade surplus is expected to fall sharply this year.

He also said that the RMB exchange rate issue should not be politicized, and China will follow it.

Trade this year

Data show that from 1 to April, China's trade surplus was US $16 billion 110 million, down 78.6% from the same period last year.

Among them, exports increased by 29.2%, imports increased by 60.1%, and import growth was about double that of export growth.

"This basically laid the trade situation this year, and this year's trade surplus will drop sharply."

Yao Jian said.

In addition, due to the increase in import commodities, especially commodity prices and the increase in domestic demand, the general trade deficit in the first half of April was $39 billion 300 million.

It is reported that China's trade surplus reached a record $196 billion 100 million last year, the trade surplus narrowed in January this year, a trade deficit in March, and a surplus in April.

Yao Jian pointed out that the European Union is China's largest export market, and that the weak economic growth in the euro area will affect the export situation of China.

At the same time, the European debt crisis caused huge fluctuations in the financial market, will delay the global economic recovery process.

In addition, the current European debt crisis has an impact on the stability of the euro. This year, from 1 to April, the yuan appreciated 14.5% against the euro, which caused cost pressure to our export enterprises, which will affect the formulation of China's trade policy.

RMB exchange rate should not be politicized.

For the issue of RMB exchange rate, Yao Jian said that it should not be politicized.

He stressed that there was a general consensus on the impact of the RMB exchange rate on Sino US trade, that is, the RMB exchange rate is not the root cause of China's surplus to the US and the global economic imbalance. The root lies in the consumption pattern and financial supervision mode of the United States.

For the United States

Yao Jian believes that the United States is based on three considerations: first, the necessary means for the United States to increase employment; secondly, it helps to alleviate the trade deficit of the United States; and again, this is an important aspect of strengthening Sino US foreign relations cooperation.

Supporting Chinese enterprises to open up overseas markets

Yao Jian said that from 1 to April, China's total foreign direct investment in non-financial sector amounted to US $11 billion 400 million.

Among them, the investment in April was $3 billion 880 million, an increase of 35.7% over the previous month.

From 1 to April, China's foreign contracted projects completed a turnover of US $23 billion 80 million, an increase of 28.7% over the previous year, and the new contract amount was 36 billion 640 million US dollars, down 17.8% from the same period last year.

Yao Jian revealed that the Ministry of Commerce will revise the provisions of foreign investment in the establishment of investment companies, and encourage multinational companies to set up regional headquarters and functional institutions such as R & D, procurement and profit accounting in China.

In addition, Anshan Iron and Steel Group has announced plans to build 4 steel mills and 1 electrical steel plants in the United States. Yao Jian said that signing the investment agreement is an important step for Chinese enterprises to go out.

At present, the Ministry of Commerce has not yet received its application, but it is expected that after its declaration, the Ministry of Commerce will support the arrangements for Chinese enterprises to open up overseas markets.