Four Factors Affect the Foreign Trade Situation in the Next Year

ing and Finance Ministry of Commerce and theaccelerating recovery.
Institute of International Trade and EconomicSpeed up economic recovery in Japan and the U.S.,
Cooperation 28, 2003 release, "China's foreign tradethe world's investment pick up, stabilize international
situation," Prospects of the 2004 report of the worldoil prices and other favorable factors have led to the
economy and world trade, the overall situation.overall world economy and trade situation will be
Report that the overall situation continues to becomefurther to the good. Expected annual growth rate of
better, and still need to focus on related issues.world economy in 2004 expected to reach 4.1%,
Four factors influence can not be ignored:developed and developing countries economic growth
First, the export tax rebate system reform onwill be 2.9% and 5.0%, higher than the level this year.
exports can not be ignored.World trade will continue to rise, annual growth rate
Since January 1, 2004, China will implement a newof world merchandise trade is expected to reach
export tax rebate policy to reduce export tax rebate5.4%, much higher than 2.9% in 2003. Global
rate will increase the cost of export enterprises,transnational direct investment will also be bottoming
export expansion may affect the enthusiasm, someout, there may be a moderate recovery.
enterprises had been in the protection of theSecond, the international commodity market
low-profit goods may be give up the export of someconditions in 2004 warmed, the price rise.
labor-intensive products face intense competition mayAccelerate the pace of economic recovery in the
be forced to withdraw from the international market,world, led by the international commodity markets is
thus making the total expansion of China's exportexpected in 2004, demand and prices will be General
growth and the impact of varying degrees.Improvement. Bulk agricultural products affected by
Meanwhile, the export tax rebate increment aftersupply and demand factors, prices are generally bullish
the implementation of the central and local share, willin 2004. Total world supply of steel products than the
lead to less new export tax rebates and limitedtotal demand, but the developed countries caused by
inter-regional issues such as acquisition, also needeconomic restructuring, the continued cuts to the
attention.international market prices of steel products will show
Second, trade protectionism, the threat of China'sa recovery trend. Textile market, increasing
export growth further increased.international competition, but countries around the
In recent years, a variety of trade protectionismworld, the high demand for textiles is constantly
against China acts of the rise, the development ofincreasing. Mechanical and electrical products, IT
export trade to China pose a serious threat.products in the international market has taken the
Therefore, we should attach great importance to thelead to restore the economy. The international oil
development trend of international trademarket supply and demand becomes more balanced,
protectionism, to take effective countermeasures toin 2004 oil prices expected to remain at 22-28 dollars
prevent its employment in China, foreign exchangeper barrel "normal price range.
income and social stability of the possible negativeThird, the developed countries in the ascendant
impact.wave of industrial restructuring and the transfer,
Third, WTO transition period after the response to aimport and export for China to expand trade scale
very difficult task.and create more opportunities.
In 2004 after China's accession to W TOCurrently, to multinational companies led by
commitments to fulfill the crucial year, most of theinformation technology represented a new round of
transitional measures would expire at the end ofworldwide industrial restructuring and the transfer
2004.process in the ascendant. With the gradual
From December 2003 onwards, distribution, insurance,improvement of the world economic situation, will
banking, transportation, telecommunications,promote the international direct investment to
advertising and other services, not only opening upbecome more active again. In recent years, China's
geographic expansion, and foreign stocks thaninvestment environment has improved, especially the
increasing, reducing barriers to entry; in 2004 toYangtze River, Pearl River Delta has the two
abolish the oil, natural rubber, some Automotive andadvantages of industrial clusters, foreign capital
parts of 50 tariff lines of products of non-tariffcontinued to flow into China, the prospect of better
measures, tariff quotas for agricultural products andforeign direct investment-led growth of China's import
fertilizer will further increase capacity. This will makeand export trade even open space.
China's accession to WTO is facing after theFourth, China will continue to maintain rapid economic
response more difficult task that requires greatgrowth, institutional policy environment tends to
attention caused by the parties concerned.improve.
Fourth, China's trade balance may have beenFrom the current trend of economic development,
changed.China's economy has entered a new round of growth
Since the second half of 2002, as export growthcycle. In 2004, China will adhere to the principle of
than import growth continues to significantly cutexpanding domestic demand, continue to implement
China's trade surplus. View from 2004, export growththe proactive fiscal policy and prudent monetary
might fall sharply, while domestic demand will remainpolicy, national economy will maintain a rapid growth
high level, long-standing trade surplus situation may bemomentum is expected to more than 7% GDP
broken. From the Chinese macro-economic level, thegrowth is expected. Plenary Session on perfecting
trade surplus in a given period of reduced or eventhe socialist market economic system to a
deficit, on the domestic economy will not cause acomprehensive plan and work plans, a longer period in
significant impact, its impact on China's economic2004 and China's economic and trade development
development more dependent on the structure ofwill have a significant positive impact.
imports. If the macro-control on the import structureReport said, internal and external environment does
of misconduct, may impact certain domesticnot occur if major changes, the initial estimated, in
industries vulnerable. Therefore, the need to give full2004 China's foreign trade growth Rengqiang stable
attention to the structure of imports and import ofDi, but considering the high base year, import and
changes in trend.export, the export tax rebate rate down Deng
Will Play a Positive Role in Promoting the Fourfactors, import and export Maoyitebie is export
First of all, developments in major economies, thegrowth will likely come down significantly.
current global economy is increasingly clear signs of