7 trillion yuan (USD 1.12 trillion) investment in infrastructure approved by National Development and Reform Commission

By | April 11, 2013

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According to the People’s Daily, the General Administration of Customs in the State Council Information Office yesterday held a conference about the first quarter imports and exports. Spokesman Zheng Yue announced
that import and export value of China’s foreign trade grows by 13.4% in the first quarter of 2013, much higher than the foreign trade growth level of 6.2% in the full year of 2012. Zheng Yue Yeung said, in the first quarter of this year, China’s foreign trade growth rate is significantly higher than the level of last year and there are three reasons:

1. Better policy environment

“Since last year China introduced a number of measures to stabilize the development of foreign trade. In September 2012, the State Council issued the “Suggestions on the promotion of the steady growth of foreign trade”; the Ministry of Finance and the National Development and Reform Commission jointly issued the ” Cancellation and exemptions of administrative fees in relate to import and export”; the General Administration of Customs had also introduced a number of suggestions and policy guidance on the promotion of the steady growth of foreign trade. At the same time, the country has also been actively guiding the foreign investment to upgrade from the low-end manufacturing to the high-tech fields to further improve the quality of the utilization of foreign investment. With the policies and measures released bringing positive effects on the industries, China’s stable foreign trade growth is supported.”

2. Established positive trend in the development of the national economy

“The second reason is the basically established good trend in the development of the national economy.” Jumped Zheng said, “In the fourth quarter of last year, 7 trillion yuan (USD 1.12 trillion) investment in infrastructure was approved by National Development and Reform Commission, targeting at mass transit, highways, airports, etc. the construction of infrastructure. The banks’ long-term lending is also increased significantly. China’s economy has shown signs of stabilization and recovery trend in March of this year: China’s manufacturing purchasing managers index PMI was 50.9 in March this year, which is the sixth consecutive month being above 50. Better economic trend provides a good market environment for the growth of the import and export business.”

3. Enhanced confidence among the export enterprises

“The enhanced export confidence among the export enterprises is the third important factor. The comprehensive advantages of China’s exports persist because of the reduced pressure of labor costs. China’s foreign trade situation this year may be slightly better than last year.”

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