China will focus on boosting exports to emerging economies next year in the face of 'severe challenges' from sluggish demand in Europe and the US and rising costs at home, a senior trade official said yesterday.
'Next year I think that we will face severe challenges in our exports and imports,' Wang Shouwen, director of the Ministry of Commerce's foreign trade department, said on the release of a white paper on foreign trade marking the 10th anniversary of China joining the World Trade Organisation.
'However, some developing and emerging economies are enjoying sound economic performances,' he said. 'So we will attach more importance to exports to these countries.'
Last week, Xia Bin, a central bank adviser and researcher at the State Council's Development Research Centre, forecast that the contribution of foreign trade to China's growth in gross domestic product would be 'zero, if not negative'.
Wang blamed slow export growth on weakened demand from the United States and the euro zone and rising costs - as a result of higher wages and prices for land and raw materials, Compounding the problem is the yuan's appreciation against the US dollar, which makes China's exports less competitive.
Although the yuan-dollar exchange rate dipped over the past week, Chong Quan, deputy representative for China's international trade talks, said the yuan may rebound again.
China will publish its November trade data on Saturday, and economists are forecasting the weakest growth in two years.
