SIP Foreign Trade Hits USD 50 Billion for the First Time
Report from SIP Customs reveals that the foreign trade volume of SIP in 2006 made a record high by soaring above USD 50 billion for the first time in history.
The customs statistics show that the total value of foreign trade of SIP in 2006 reached USD 50.03, representing a remarkable increase of 23.4% over that the year before and an increase of 8 times over the USD 5.7 billion of the year 2002. Of the total foreign trade volume is USD 24.99 billion import value and USD 25.04 billion export value, with a favorable balance of USD 500 million for the first year, which reversed the situation of continuous unfavorable balance in the previous years. The increase rate of 12.8% for export is higher than that of import.
Similar situation appeared in 2006 for the whole municipality in foreign trade, in which SIP claimed the lion's share. In 2006, the foreign-invested enterprises (including Sino-foreign cooperative enterprises, joint ventures, and wholly-owned foreign enterprises) took up a total value of USD 48.4 billion in import and export, which is 96.7% of the total in SIP, with 131.9% increase, and together with the privately owned enterprises, they comprised 99.5% of the total.
Foreign trade partners of SIP are chiefly Korea, Taiwan, USA, Japan, EU, and countries and regions in ASEAN. Last year, USA replaced Hong Kong, Japan, and EU as the third largest trade partner of SIP. Korea is the biggest trade partner of SIP and source of import, and foreign trade with Korea in 2006 hit USD 7.08 billion. Hong Kong is the biggest export market for SIP, which involved a total export value of USD 5.35 billion in 2006.
The further upgrading of industrial structure in SIP has resulted in the formation of hi-tech manufacturing bases of IT, precision machinery, bio-pharmaceutical, new materials, and aeronautical parts. Export items of export exceeding USD 500 million each in 2006 included electrical machinery, medical apparatus, rubber and related products, ferrous metals and products, and chemicals. Electrical machinery continued to be the No.1 export item. Experts have expressed their concern that in 2006, adverse impact was shown in the export of electrical machinery, medical equipment, and rubber products due to safety regulations for foodstuffs, green protection wall against chemicals, and anti-dumping polices of EU, and that the growth rate of export in 2007 may be slowed down due to a number of factors, notably, the rise of price in raw materials caused by unified taxation policy, and delayed export rebate.
Jan. 23, 2007