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China cements export lead with December surge

China orders steps aimed at property market stability
Beijing (AFP) Jan 10, 2010 - China ordered vigilance against foreign "hot money" flows and speculative real estate investment on Sunday in its latest expression of concern over a surging property market. The order issued by the State Council, or Cabinet, called on authorities nationwide to take a range of measures to "promote the stable and healthy development of the real estate market". Property prices have soared recently, bolstered by easy bank loans, tax breaks, and lower down-payments introduced by the government last year to support the real estate sector amid an economic slowdown. The price gains have raised fears of a property bubble.

"Relevant departments need to strengthen inspection and control of credit and capital flows, cross-border investment and financing activities...to prevent foreign inflows of 'hot money' from impacting China's property market," the statement said. It also called for authorities to prioritise the construction of low-income housing and more closely scrutinise mortgage financing and the market in general. However, the notice did not otherwise announce the implementation of any specific new government policies, largely echoing earlier calls for stability in the market. Concerns have risen in recent months that a property bubble was building due to speculative investment amid rumours that a large portion of the government's 586-billion-dollar stimulus package had been channelled into asset markets. The package was first announced in late 2008 in response to help ward off the effects of the global economic downturn.

Taiwan to start trade talks with China this month: PM
Taipei (AFP) Jan 8, 2010 - Taiwan's Premier Wu Den-yih said Friday his government will begin negotiating with China later this month on a major trade pact in a bid to sign the agreement in May. "The initial contacts will start on January 20," Wu told reporters. "It would be best if we could sign the deal in May. I am looking forward to it." Taiwan's China-friendly government is eager to conclude the trade pact, known as the Economic Cooperation Framework Agreement (ECFA), which it says could lift growth and boost employment. Wu noted some public scepticism, stressing that his government will only strike the deal with the consent of the public and parliament.

"We cannot neglect the people's feelings ... we have to let them understand why our country and our industries need ECFA in order to stay competitive," he said. The needs are even more pressing now after China and countries in the Association of Southeast Asian Nations (ASEAN) decided to establish the world's biggest free trade area, he said. But the opposition Democratic Progressive Party, which favours independence from China, opposes the pact, fearing it would increase Taiwan's reliance on China and imperil the island's separate status. Taiwan and China have been governed independently since the end of a civil war in 1949, but Beijing considers the island part of its territory and has vowed to get it back, by force if necessary. Relations have improved since Taiwan's current administration assumed power in May 2008, pursuing a programme of stepping up economic ties.
by Staff Writers
Beijing (AFP) Jan 10, 2010
China's exports surged 17.7 percent in December to snap a 13-month falling streak, the government said Sunday, cementing the Asian power's new status as the world's biggest exporter.

Exports hit 130.7 billion dollars during the month as global trade perked up, bringing China's full-year export figure to 1.20 trillion dollars, according to figures from the General Administration of Customs.

Data out of Germany last week showed that China overtook Europe's biggest economy in November to become the world's top exporting nation.

The December data broke a long string stretching back to late 2008 in which monthly Chinese exports had contracted as foreign markets dried up in the global economic downturn.

State-run China Central Television quoted a top customs official as saying the figures indicated the worst was over for China's vital export sector.

"This is an extremely important turning point. Our nation's foreign trade had been falling for 13 consecutive months but is now growing," said Huang Guohua, head of the customs bureau's statistical analysis department.

"Our nation's exporters have emerged from their downslide."

Overall foreign trade -- both exports and imports -- fell 13.9 percent in 2009 to 2.21 trillion dollars, the data showed, as monthly exports fell sharply on a year-on-year basis in each of the first 10 months of the year.

But that changed in November, when exports slipped just 1.2 percent, the slowest decline of the year.

Imports for December set a new monthly record of 112 billion dollars, a rise of 55 percent year-on-year, while full-year imports came in at 1.005 trillion.

The December import record was fueled in part by a 41 percent increase in iron ore imports, the customs administration said, as China devoured foreign resources to fuel its economic boom.

The nation's politically sensitive trade surplus hit 18.4 billion dollars for the month of December, while the full-year surplus posted a rare fall to 196 billion dollars, the customs bureau said.

The 2009 trade surplus was down 34.2 percent from 2008, it said.

With China's trade data for all of 2009 now out, the nation's crowning as the 2009 export champion is expected to be confirmed when Germany releases full-year trade figures on February 9.

From January to November, Chinese exports were worth 1.07 trillion dollars. Data from the German national statistics office on Friday showed that exports from the European heavyweight came to 1.05 trillion dollars in the 11 months.

Experts have said a resurgence in Chinese trade will likely bring renewed pressure on China to let its yuan currency appreciate.

The value of the yuan, which has effectively been pegged to the US dollar since mid-2008, has been a bone of contention between Beijing and its Western trading partners, who say it keeps the currency low to boost exports.

While China has acknowledged the need to boost domestic consumption and reduce its reliance on exports and investment to drive the economy, it has so far refused to budge on its currency policy.

Premier Wen Jiabao said last month in an interview with state media that China would not yield to foreign pressure on the yuan.



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China overtakes Germany as top world exporter
Frankfurt (AFP) Jan 8, 2010
China and its population of 1.3 billion has overtaken Germany, population 82 million, as the world's top exporter, trade figures from the German national statistics office showed on Friday. From January to November, Chinese exports were worth 1.07 trillion dollars, while German data showed that exports from Europe's biggest economy amounted to 734.6 billion euros, or 1.05 trillion dollars. ... read more







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