China forecasts foreign trade to grow by 20 pc in 2012

BEIJING: China's foreign trade will expand by 20 per cent to USD 3.5 trillion next year despite a decline in export markets worldwide due to the downturn in the US and EU economies, according to a Ministry of Commerce (MOC) report.

However, the rate of expansion will be lower than what was experienced in previous years.

Foreign trade growth will slow down in the remaining months of 2011 and in 2012 mainly due to "the complicated exterior environment", the MOC said in its report.

The slackening pace of recovery of the world economy, increasing risk of a downturn and rising costs at home will pose risks to China's foreign trade, it said.

However, China will continue to boost trade growth, adjust its trade structure and expand imports to contribute to global trade balances, the ministry said.

China's foreign trade fell by 8.3 per cent from September to USD 297.95 billion in October. However, this was still a 21.6 per cent year-on-year rise, according to official data.

China's exports fell by 7.2 per cent month-on-month to USD 157.49 billion in October, while its imports dropped by 9.5 per cent month-on-month to USD 140.46 billion.

The foreign trade outlook for China is pessimistic in light of global economic turmoil, rising labour and raw material costs and mounting pressure regarding appreciation of the yuan, Vice Commerce Minister Zhong Shan had said on Friday.