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Foreign trade volume of China's private companies has exceeded that of the state-owned firms. The nation's customs authority says the figure now accounts for one-fourth of the total import and export volume.
The General Administration of Customs says private companies' import and export volumes surged over 50 percent to near 400 billion U.S. dollars in the first seven months of the year. That accounted for almost one-quarter of the nation's total...and exceeded the volume of state-owned companies. Trade surplus of the private firms during the same period stood at 112 billion U.S. dollars.
Huang Guohua, Head of Statistics Department, General Admin. of Customs said "It's the first time the private enterprises' import and export volume accounted for one-forth of the total. It reflected the government's policies on the promotion of private companies as well as diversification of China's foreign trade entities."
The figures also show China's foreign trade volume in the first seven months grew around 40 percent, to reach over 1.6 trillion U.S. dollars. July alone saw a monthly high in two years.
But officials expect a slowdown in the second half of this year, with the likely impact of the European debt crisis.
Huang Guohua said "The global economic recovery is still fragile. The effect of the European debt crisis is not yet clear. And the depreciation of the euro has also not reflected in the exports."
Industry experts are calling on exporters to speed up innovation and upgrade products, to offset the potential impact. This is also in a bid to increase their overall competitiveness. In the meantime, experts suggest enhancing risk control over exports to Europe, and raising prices of exported products to the region. They are also warning of a slowdown in U.S. economic growth.