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Minister: Foreign trade maintains steady growth
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China will maintain stable export growth and FDI inflow this year. That was the message from a press conference held by the Ministry of Commerce on the sidelines of the ongoing NPC sessions.

Chen Deming, Commerce Minister

Chen?Deming,?Commerce?Minister

Minister Chen Deming told the press that a sharp slowdown in annual export growth in February to six and a half percent was the result of weaker demand due to the subprime credit crisis, the Lunar New Year holiday and government policies to weed out low-end exporters.

Chen Deming, Commerce Minister said "The impact will be temporary. Looking at the year as a whole, we can still expect steady growth in foreign trade. But we will continue to work to improve the export structure and increase imports. We are not purposely seeking trade deficits with other countries."

FDI into China has seen robust growth in the first two months. Minister Chen said that reflects investor confidence in China's improving investment environment.

Chen Deming said "China remains one of the best places to invest in the world. Last year, we had quite a few new laws and regulations concerning foreign investments, like the new Corporate Income Law. That did not reflect a change in our policy toward foreign companies. And the facts show that did not slow down the inflow of FDI."

In regards to inflation pressure, Minister Chen said the government has the confidence and ability to ensure market demand, thus controlling price hikes. He predicts CPI will remain high but steady in the first half of this year and then decline. He said the government target of 4.8 percent CPI growth for 2008 was within reach.

Foreign trade remains a powerful driver for the Chinese economy. And as a large exporter in the world, China now prefers balanced trade. In addition to expanding imports, the country is also encouraging outbound investments. Meanwhile China says its opening-up policy will remain unchanged.

(CCTV March 13, 2008)

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