Category Archives: China Trade News

Obama Targets Outsourcing In Re-election Year

Posted by on February 4, 2012 No comments

US President Barack Obama on Wednesday offered tax incentives to American companies bringing jobs back home, a move that will worry outsourcing hotspots India and China.

“My message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed,” Obama said in the state of the union speech, his final before seeking re-election this year.

“Companies get tax breaks for moving jobs and profits overseas. Companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it,” he said.

Obama returns to the outsourcing theme time and again as joblessness in the US hovers around 8%.

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China Trade Growth Seen Modest In Difficult Q1

Posted by on January 20, 2012 No comments

China Trade China‘s export and import growth will show stable and modest growth in the first quarter of 2012 despite difficult trade conditions, the Ministry of Commerce said on Wednesday.

China‘s relatively cheap labour and policy incentives would keep exporters competitive and help the world’s second-biggest economy achieve its trade growth goals. 

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Chinese Exports Grow, but Imports Show Signs of Weakening

Posted by on January 11, 2012 No comments

BEIJING — Exports from China rose 13.4 percent in December compared with a year ago, while import growth unexpectedly slowed to 11.8 percent because of lower prices and moderating domestic demand, government data released Tuesday showed.

Overall, the Chinese trade surplus shrank to $155 billion in 2011, from $183 billion in 2010, as imports picked up and demand for Chinese goods in Europe and elsewhere softened. IHS Global Insight, an economic forecasting firm, said that while still sizable, the surplus was China’s lowest in three years. That could help China fend off pressure from the United States to allow its currency to appreciate faster.

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China, Japan Agree on Direct Yuan, Yen Trade

Posted by on January 5, 2012 No comments

Beijing, China (AHN) – The governments of China and Japan, the world’s second- and third-largest economies, announced Monday an agreement to directly trade in yuan and yen instead of converting their currencies first to dollars.

Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda also agreed during a meeting in Beijing ending on Monday that Japan will hold yuan in its foreign-exchange reserves, which are now largely denominated in dollars.

The direct currency swap is seen to benefit Chinese and Japanese companies in terms of reduced trading cost and currency risk. The direct currency exchange will also ease investments between the two countries.

Trade between the two countries amounted to $340 billion in 2010. From January to November this year, Japan exported $138.5 billion (10.8 trillion yen) to China and imported $154 billion (12 trillion yen) with 60 percent of the trade transactions settled in dollars, according to Japan’s finance ministry.

A joint working group will be formed to set the implementing guidelines for the agreement.

Last week, China also forged a deal with Thailand for a direct currency swap worth $11 billion in a move to promote the use of the yuan in the 10-nation Association of Southeast Asian Nations (Asean).

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China Trade Deficit In Agricultural Goods Up 48.2%

Posted by on January 5, 2012 No comments

December 30 — China posted a 28.7 percent year-on-year increase in the value of the foreign trade in agricultural products to $138.4 billion during the first 11 months, reports Securities Times, citing the Ministry of Agriculture.

Exports of agricultural products increased 24.2 percent year-on-year to $54.32 billion, while imports rose 31.8 percent to $84.08 billion. The trade deficit in this sector rose 48.2 percent year-on-year to $29.75 billion yuan.

During the first 11 months, corn imports fell by about 18.9 percent year on year to 4.46 million tons, while the import value totaled $1.68 billion, up 18.1 percent. Corn exports rose one percent year-on-year to 1.11 million tons, with the export value up 20 percent to $730 million.

Rice imports surged 86.3 percent year-on-year to 536,000 tons, while rice exports fell 17.3 percent to 458,000 tons.

During the same period, total sugar imports increased 47.8 percent year-on-year to 2.42 million tons, and the import value rose 96.6 percent to $1.65 billion.

The import value of edible oil seeds rose 21 percent year-on-year to $28.41 billion, while the export value increased 19.6 percent to $1.23 billion. The trade of edible oil seeds resulted in a deficit of $27.18 billion, up 21 percent from the same period in 2010.

Imports of edible vegetable oil increased 29.1 percent year-on-year to $8.01 billion, while exports of such products surged 71.9 percent to $200 million. The deficit from the trading of edible vegetable oil rose 28.3 percent year-on-year to $7.81 billion.

In addition, exports of vegetables rose 20 percent year-on-year, while fruit exports increased 30 percent.

Shares of Fujian Sunner Development (002299) rose 2.21 percent to close at 14.83 yuan today.

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