BEIJING — A new official report has highlighted China’s mounting economic challenges, including how to boost exports, amid the slow recovery of the global economy and some countries resorting to currency depreciation.
“The world economy is growing at an anemic pace, and consumption and investment is lackluster in many economies. Global trade growth lacks momentum,” the Ministry of Commerce (MOC) said in a report released on May 5.
China’s export competitiveness is facing headwinds on two fronts: high-end products from advanced economies like the United States are opening up new foreign markets; and exports of cheap products from developing countries like India have grown fast over the past five years, noted the report.
Some countries have used currency depreciation to bolster exports and economic growth, resulting in the forced appreciation of RMB, dimming the competitiveness of Chinese products, said the ministry.
China’s total foreign trade posted a 6-percent decrease in the first three months of 2015, falling to 5.54 trillion yuan ($905.5 billion), with exports rising 4.9 percent and imports dropping 17.3 percent, official data showed. The figures came after China lowered its annual target for foreign trade growth to around 6 percent for 2015, from the 7.5-percent goal for 2014.
Despite the challenges, China’s exports still enjoys some favorable conditions including a solid industrial foundation, a good industrial chain, fast expansion of equipment manufacturing and high-tech industries, said the ministry.
Without any big negative external factors, China’s foreign trade volume is projected to stage a “relatively steady” growth this year, said the MOC.