July 23 – Despite export rates slowing to 21.9 percent for the second quarter of the year compared to last year’s 27.6 percent, the government says it remains confident about the country’s economy for the remaining months of this year.
June exports only rose by 17.6 percent compared to May’s 28.1 percent.
The Ministry of Commerce says that will maintain the new policies implemented at the beginning of the year in the face of slowing exports.
Vice-Minister of Commerce Gao Hucheng told Xinhua the current trade figures are within their expectations adding that the lower export rate was due to trade policy adjustments initiated this year.
“We estimate exports will maintain reasonable growth,” said Gao. “The trade balance has improved, in accordance with our goals at the beginning of the year.”
In comparison, imports increased by 30.6 percent. Electronic and machinery product exports increased by 25.3 percent to reach US$389 billion while high-tech export products rose by 21.8 percent to US$196 billion. Garment and accessories exports fell by 15 percent to US$9.8 billion in June, the lowest monthly rate for the year.
This has led to the majority of textile businesses in the country incurring losses with the average profit rate in the industry for the first five months of the year only at 1.1 percent.
Sources say that in addition to the government’s tightening policies, the lower export figures was caused by the appreciation of the yuan against the US dollar and the slowing global economy led by the United States.