Overseas Service Trade Increase
China’s overseas trade has been developing and growing steadily every year, and now a spokesman for the Service and Trade Department of the Ministry of Commerce has announced that it is estimated that the overseas foreign trade will once again rise. The estimated rise in service trade this year was twenty percent, which has led to overseas service trade hitting the US$300 billion mark. But where there is a rise, there is sometimes a fall in a different sector, and economists are predicting a fall in trade surplus.
Since the beginning of 2009, the foreign service trade of China has been increasing rapidly. Wang Huiying, speaking on behalf of the Service and Trade Department, commented that it has grown each year at 31.7 percent, and that last year alone transformed China into the fifth largest overseas service trader. The volume for last year was calculated at US$286.8 billion. Data and information gathered by the Ministry of Commerce showed that more foreign investors were being attracted by the service trade sector and that it was not premature to speculate on enjoying yet another successful year in 2011. Annual growth in exports has also seen an increase, which was more than the import sector by 16.7 percent.
On the other hand, as explained by Vice Commerce Minister Zhong Shan, the import sector is on the rise as well, which will see a drop in the trade surplus of China. Zhong Shan explained that even though exports have seen a dramatic increase, there will be a noticeable change in the 2010 trade surplus. In the year 2009, China had a trade surplus of $196 billion, but had decreased through the month of September to $181 billion. This shows that the twelve month rolling trade surplus had definitely decreased, as the first few months were not beneficial to China, even though it had increased in the last months. Zhong went on to say that discussions between the United States of America and China were needed to redefine trade issues that have been experienced, saying: “Chinese enterprises in recent years have become a major target of the investigations made by the United States under Section 337. In particular, this has been difficult for firms.”