China-ASEAN trade at new high in 2003

China-ASEAN trade at new high in 2003

Agence-France Presse, Beijing

China's trade with Southeast Asian countries hit a record high
of US$78.25 billion in 2003, surging by 42.8 percent year-on-
year, according to Chinese customs statistics released on Sunday.

Trade between China and the 10-nation Association of Southeast
Asian Nations (ASEAN) was tipped in ASEAN's favor, according to
the statistics of the General Administration of Customs, the
Xinhua news agency said.

China's import jumped by 51.7 percent to $47.33 billion while
exports grew at a slower pace of 31.1 percent to $30.93 billion,
with a trade deficit of $16.4 billion.

China's increasing imports of raw material and parts and
components is the major reason for the trade deficit, said Xu
Changwen, head of the Asian and African studies department of the
Commerce Ministry's institute of international trade and economic
cooperation.

China mainly bought machinery products and parts, animal fat
and plant oil, and mineral and agriculture products from ASEAN
countries such as Malaysia and Indonesia; and sold machinery and
electronic products, chemicals, fabrics and garments.

The implementation of plans to set up the China-ASEAN free
trade area (FTA) by 2010 also fueled bilateral trade, according
to trade experts.

"The two sides have had substantial negotiation on the
construction of FTA and some pilot projects have been conducted,
which spurred bilateral trade to some extent," said Zhang Xiaoji,
director of the Foreign Economic Relations Department of the
Development Research Center, a State Council think-tank.

As China's economy, which recorded a 9.1 percent growth rate
in 2003, is expected to see continuing rapid growth this year,
trade between China and ASEAN also will grow.