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.