August 4, 2006
China's agri-exports down, trade deficit up for H1 2006
Exports of China's agricultural products have declined significantly while imports have increased, according to statistics released by the country's Ministry of Commerce.
Based on the latest customs data, total trade value of agricultural goods imported and exported in the first half of this year was US$30.2 billion, up 15.6 percent from the same period last year.
Exports totalled US$14.07 billion, a 9.3-percent increase (last year's on-year increase was 22.5 percent) while the value of imports rose 21.6 percent to US$16.22 billion. This gave rise to a trade deficit of US$2.15 billion, a more negative trade balance than last year's.
Hard hit by the competitive advantage in foreign technology, the pace of China's agri-exports has slowed. Exports to Japan dropped sharply after the latter released a monitoring plan for the presence of chemical substances in imported foodstuffs.
Exports for poultry product were also affected on bird flu concerns. Grain exports dropped significantly as quality issues hindered China's competitiveness in the international market.
Imports of agricultural goods in China were up due to strong demand, the generally low volume of imports last year, and the relatively lower prices in global agri-markets brought about by the revaluation of the Chinese currency, the Renminbi.
Any further increase in the imports of agricultural products is seen to shrink in the coming half year.










