Africans In China

Foreign trade and utilization of foreign capital in Guangzhou continue their momentum despite the financial turmoil in the United States, and Europe and the general global economic slowdown, official statistics indicate.
Latest customs figures show the city had exports worth $32.64 billion in the first three quarters of this year, an increase of 17.9 percent from a year ago.

Imports in the first nine months were totaled $30.24 billion, up 14.9 percent.

The growth of exports rose 0.6 percentage points from a year ago, while imports edged down by 0.2 percentage points.

Exports to the US in the three quarters climbed up 0.2 percentage points after an eight-month fall, while the exports to the burgeoning markets of the Middle East, Africa and Latin America surged 33.6 percent, 39.9 percent and 33.3 percent respectively.

“China’s comparatively independent financial system and slowing of RMB appreciation are among the reasons Guangzhou’s foreign trade has not been severely affected by the financial crisis,” noted Li Qingqing, an associate professor of economics with South China Normal University.

The dominant share of exports in general trade, the gifts for the approaching Christmas holiday and rising prices of export commodities have also sustained trade numbers, she added.

According to statistics released recently by the municipal statistics bureau of Guangzhou, the city secured contractual foreign investment of $4.48 billion in the January-September period, down 18.8 percent from the comparable period in 2007, while the city actually utilized foreign capital of $2.89 billion in the nine months, up 13 percent.

Foreign capital used in information technology, computer services and software totaled $90.87 million, 1.8 times the year before. The real estate sector saw a foreign investment decrease of 3.3 percent to $1.2 billion due to the nation’s macro-control policy on the sector.

According to Gao Yaozong, deputy director of the city’s foreign trade and economic cooperation bureau, a growing number of foreign investors are interested in the modern tertiary industries and have switched to finance, logistics, exhibition and conventions, design and consultation from the previously popular real estate sector.

More than $4 billion in foreign capital has gone to the city’s service industry in the past five years.

Source: China Daily