In January 2015, Guangdong saw a decline of 8.1% in foreign trade on a year-on-year basis, lower than the decrease rate of the country’s average. Moreover, historical changes occurred in the foreign trade structure with the monthly record of general trade exceeding the processing trade for the first time in more than 20 years.

 

The statistics of the Customs authority shows that in January Guangdong’s imports and exports in value reached RMB484.58 billion, down 8.1% on a year-on-year basis (the same below) while the figure of the whole country declined by 10.8%, accounting for 23.2% of the total of the foreign trade in value. Of that, the exports amounted to RMB307.26 billion, down 5.8% while the country’s average declined by 3.2%, accounting for 25.1% of the total exports; the imports amounted to RMB177.32 billion, down 11.8% and the country’s average declined by 19.7%, accounting for 20.6% of the imports in total.

 

The processing trade has always taken an important position in the export-oriented economic system of Guangdong and is the most important trading pattern of the province. However, with accelerated transformation and upgrade, its position has changed gradually.

 

In January, the general trade reached RMB226 billion, down 2.3%, but surpassed the imports and exports of processing trade for the first time in more than 20 years as the processing trade reached RMB193.11 billion in the same period, down 17.5%.

 

The opportunities brought by construction of China (Guangdong) Pilot Free Trade Zone, measures of deepening reform and flourishing emerging types of businesses will be twisted with challenges such as tortuous and slow recovery of the world economy, increased volatility of the financial market and price fluctuation of bulk commodities in the international market. Under such a background, Guangdong will face a relatively high pressure in foreign trade and joint efforts will be needed to promote the sector to develop continuously and soundly.

 

In terms of the bilateral trade with its main trading partners, Guangdong’s imports and exports increased by 6.1% and 0.8% to EU (28 members, the same below) and ASEAN (10 members), respectively, and declined by 9.4% and 1.1% to Hong Kong and the United States, 16.4% and 5.3% to Japan and Taiwan, and 26% to ROK. Moreover, the imports and exports of Guangdong to countries alone the Maritime Silk Road reached RMB86.81 billion, down 3.6%, but better than the average of the foreign trade in general which declined by 8.1%.

 

With regards to exports, Guangdong saw exports of RMB202.53 billion of mechanical and electrical products, down 5.1%, accounting for 65.9% of the total exports of Guangdong, RMB98.44 billion of high-tech products (cross-statistics with mechanical and electrical products, the same below), down 7.5%, and accounting for 32% of the total. The decline of exports of mechanical and electrical products and high-tech products was mainly impacted by the decrease of the categories “electric appliance and electronics”, “mechanical equipment” and “computer and communication equipment”. But there are some highlights: transportation tools, electronic technology and photoelectric technology enjoyed two-digit growth of export and the aviation and spaceflight technology exports reached RMB1.02 billion, an increase of six times.

 

In the same period, the labor-intensive product exports reached RMB70.46 billion, down 3%, accounting for 22.9% of the total.

 

Source: Nanfang Daily ,Feb. 17, 2015