NBS spokesman analyzes reasons for trade surplus

Yesterday National Bureau of Statistics (NBS) spokesman Li Xiaochao addressed reporters at a news conference held by the State Council Information Office.

He was queried about why China is experiencing a continual growth in its foreign trade surplus and whether it will be possible to maintain this.

China has posted a total foreign trade surplus of US109.85 billion for the first three quarters of the year. Li attributed this to a number of factors.

Globalization of the economy

The free movement of goods and services resulting from globalization has promoted the rapid growth of trade in China.

Strong production capacity

Domestic investment and foreign direct investment (FDI) in the past 30 years has strengthened the country's production capacity. The processing trade in particular, which accounts for 60 percent of exports, has covered a shortage in the international market.

Demand for goods and services in the international market

China's three largest trading partners, the EU, US and Japan, are each based on a high-technology intensive economic structure. China has cheap labor, which has decided the high demand for China's goods and services in the international market.

Low production costs

Products made in China are highly competitive because of low manufacturing costs.

Rapid world economic growth

The world economy has grown rapidly in recent years.

Li said he expects China to maintain a significant trade surplus in the coming years due to situation both at home and aboard.

By People's Daily Online