CHINA'S
FOREIGN ECONOMIC RELATIONS
Rapid growth was registered in
foreign trade. Total value of imports and exports in 2002 reached
US$620.8 billion, up 21.8% over the previous year. The value of
exports was US$325.6 billion, up 22.3%, and that of imports was
US$295.2 billion, up 7.8%; to EU countries US$48.2 billion, up 17.9%;
to ASEAN members US$23.6 billion, up 28.3%; to the Republic of Korea
US$ 15.5 billion, up 23.8%; to Taiwan Province US$6.6 billion, up 13%;
and to Russia US$3.5 billion, up 29.9%.
Foreign direct investment
increased steadily. In 2002, the contracted foreign capital through
foreign direct investment stood at US$82.8 billion, up 19.6%. By the
end of 2002, China had approved 424, 196 foreign-funded enterprises,
with foreign contracted investment reaching US$828.06 billion and
foreign capital actually utilised totaling US$447.97 billion.
Foreign economic and technical
cooperation maintained good momentum. In 2002, the accomplished
business revenue through contracted projects and labour contracts was
US$14.4 billion, up 18.2%. the value involved in the new contracts
signed was US$17.9 billion, up 8.7%.
Customs tariff were reduced but
revenue increased in 2002. Revenue from tariffs has always been an
important source of China's central finance, accounting for about
one-third of the central finance. The year 2002 was the first year
after China's WTO entry and to fulfill its commitment for tariff
concessions pledged for the year 2002, the Chinese Government adjusted
tariff rates beginning from January 1. The rates for 5,332 taxable
items commodities were reduced at varying degrees and as a result,
China's general tariff level dropped from 15.3% to 12%. However,
thanks to the favourable situation in foreign trade, the state
treasury took in a total of 259 billion yuan in tariffs and
import-related duties, a new high.
Strenuous efforts were made to
crack down on smuggling. From 1998 to 2002, customs offices throughout
the country seized 55, 755 smuggling cases with smuggled goods valued
at 43.04 billion yuan. Large-scale smuggling, which had once been
rampant in the country, was brought under effective control. After a
customs anti-smuggling task force was initiated in 1999, 14,955
suspected smugglers were held for coercive measures and 7,791 of them
were transferred to procurator organs.
China continued to manage 52
categories of bulk and sensitive goods by means of export licensing in
2003, including export quota license, export quota tender, paid use of
export quota, free tender for export quota and export permit.
Table 1: Imports and
Exports in China in 2002
Item
|
Value
($ 1 billion) |
Increase over 2001 (%) |
Gross value of imports and
exports |
620.79 |
21.8 |
Gross value of exports |
325.57 |
22.3 |
Gross value of imports |
295.22 |
21.2 |
Foreign trade balance |
30.35 |
34.6 |
Table 2: Imports and
Exports by Major Categories
Item
|
Volume
($ 1 billion) |
Increase over 2001 (%) |
Total exports |
325.6 |
22.3 |
Of Which: General trade |
136.2 |
21.7 |
Processing trade |
179.9 |
22.0 |
Of which: Mechanical and
Electrical products |
157.1 |
32.3 |
Hi- and new-tech products |
67.9 |
46.1 |
Total imports |
295.2 |
21.2 |
Of which: General trade
|
129.1 |
13.8 |
Processing trade |
122.2 |
30.1 |
Of which: Mechanical and
Electrical products |
155.6 |
29.1 |
Hi- and new-tech products |
82.8 |
29.2 |
|