Chinese tiger roars despite global slump
In contrast to the sluggish global economic outlook, Chinese exports grew a considerable 28.1 % year on year for July.
With China’s accession to the World Trade Organisation last year, and the subsequent inflow of multinationals into the country, direct foreign investment grew to $29.5 billion in the first seven months- up 22 % from the corresponding period last year.
The Chinese Ministry of Foreign Trade and Economic Co-operation revealed that exports rose to $29.2 billion in July from $22.8 billion last July. Also, last month's export growth - China's highest monthly gain in two years - was almost double the first half-year's growth of 14.1 %. It was also well up on the second quarter's 17.8 %.
There had been concerns that the mainland export sector, China's major income earner, would falter following the September 11 attacks on the US. Export growth slowed to just 6.8 % last year, down sharply from the 27.8 % level seen in 2000. However, the July export growth was foreshadowed by last month's industrial output figures, which were up 12.8 % year on year
.HSBC chief economist for Greater China George Leung Siu-kay said: "China's exports have been very cost-competitive, a trend starting in 2000." Analysts expect full-year export growth to top 10 per cent.
Gross domestic product growth is expected to reach at least seven per cent this year, and a figure of 7.5 % is viewed as achievable. Last week, China's trade minister Shi Guangsheng predicted the country would attract $50 billion in foreign direct investment this year, a slight increase from last year's record of $49.6 billion.
