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China Trade to Reach US$1.1 Trillion in 2004

China's total trade volume will reach US$1.1 trillion in 2004 -- up 30 percent over 2003 -- with a trade surplus of about US$10 billion, said Assistant Minister of Commerce Yi Xiaozhun.

China still faces difficult challenges in its efforts to maintain the sustainable development of foreign trade, mainly because of an ever-changing international environment and lingering in-depth problems with its foreign trade, Yi said, while addressing a conference on the promotion of exports of private companies.

The most prominent problem next year will be trade friction in textile exports following the unification of the global textile market, Yi noted.

 According to its agreement with the World Trade Organization, China's passive quota of textiles will be abolished on January 1, 2005. Strong competition from China's textile industry has aroused concern from both developing and developed nations. The United States and the European Union have repeatedly asked China to slow down its soaring textile industry.

Extensive growth is another major hindrance to the sound growth of China's foreign trade, Yi acknowledged, as is the lack of its own brands and intellectual property, especially the intellectual property of core technologies.

Intellectual property shortages have already resulted in lower prices of some Chinese products. Figures released by the National Bureau of Statistics show that China's colour-TV export volume rose by 36. 1 percent year-to-year during the January-September period, while prices dropped by 5.1 percent.

Export prices for ships, carpets, shoes and other goods declined by varying degrees along with increased export volumes.

The soaring prices of energy and raw materials, plus tight-supplies of coal, electricity and oil, will also weaken China's competitive advantage in exports, Yi said.