No reason to fear China trade drop off

Source:Agencies Published: 2012-10-24 23:10:25

China's exports expanded significantly in September, when import growth also resumed after declining in August. 

But many Chinese economists are still worried about the country's foreign trade outlook and claim that rising labor costs are eroding the price competitiveness of locally-made goods.

Actually, made-in-China products are still quite competitive in the global market, and experts should not be so pessimistic about the future of the nation's foreign trade.

While a small portion of the orders that may have previously come to China have been transferred to other countries, such as Vietnam and India, this will not put too much strain on China's overall export volume; especially considering that few of China's emerging trade rivals in Southeast Asia can compete with it in terms of economic stability or infrastructure.

Besides, as the world's second largest economy, China still has the power to increase exports of raw materials and overseas project contracting.

The author is Mei Xinyu, a researcher at the Ministry of Commerce.



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