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Business / Economy

Nation to see higher quality, lower growth in trade

By Li Jiabao (China Daily) Updated: 2014-03-06 07:18

"We have to be especially clear that the traditional advantages supporting China's fast trade expansion in past decades are changing fundamentally," said Long Guoqiang, a researcher at the Development Research Center of the State Council.

"Rising costs at home and changing environments abroad force us to restructure our strategy and enhance China's position in global value chains," Long added.

Nation to see higher quality, lower growth in tradeZhu Haibin, chief China economist at JPMorgan Chase & Co, projected China's exports this year to rise to about 11 percent, compared with 7.9 percent in 2013, driven by growth in developed economies despite rising production costs, yuan appreciation and relatively weak demand in emerging markets.

"However, structurally, the general rise in production costs remains the key challenge for China's export and manufacturing sectors," Zhu said in a note.

Despite its lowered trade growth target, China's non-financial foreign direct investment is expected to rise by 3.5 percent to $121.7 billion in 2014, the National Development and Reform Commission said in its annual report to the legislature on Wednesday.

China will expand market access for foreign investors and deepen reforms of the FDI regulation system, according to the NDRC report.

The premier said the government will strive to make progress in negotiations on agreements concerning trade in services, government procurement and information technology, while speeding up negotiations on new areas such as environmental protection and e-commerce.

"We will actively participate in developing high-standard free trade areas; continue negotiations on investment agreements with the United States and the European Union and accelerate free trade areas, negotiations with the Republic of Korea, Australia and the Gulf Cooperation Council," Li said.

"We will continue to promote trade and investment liberalization and facilitation, strive for mutual benefits with other countries and ensure that opening-up reinforces and is reinforced by reform and development," the premier concluded.

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