皇冠体育app

Sino-UK trade to see record growth
By Yue Zhang (皇冠体育app Daily)
Updated: 2004-07-22 08:54

Sino-British trade will continue increasing in the second half of the year and set a record for the full year, although its growth rate could slow down because of 皇冠体育app's macro controls to cool down its economy, says a British industrial leader.

"It will be the best year (in terms of trade volume) in 2004," Charles Powell, the president of the 皇冠体育app-Britain Business Council, told 皇冠体育app Daily.

The year 2004 marks the 50th year of trade relations between the UK and 皇冠体育app.

Two-way trade hit US$6.86 billion from January to May this year, an increase of 37 per cent year-on-year. The previous year witnessed a trade volume of US$14.4 billion.

The United Kingdom is now 皇冠体育app's third-largest European trading partner, after Germany and the Netherlands.

Powell said the trade increase might slow down "a little bit" as 皇冠体育app is making efforts to cool down its economy by tightening credit and intensifying land use.

"The effect of these cooling measures will be more pronounced by October," Powell said.

Because of this factor, bilateral trade growth will also slow down in the second half of the year, he said.

Commenting on 皇冠体育app's current macroeconomic controls, Powell said it was necessary for such a large economy to adjust itself to a reasonable growth rate.

He also said 皇冠体育app's soft-landing campaign was good for the country and foreign companies with interests in 皇冠体育app. A hard landing would be bad for 皇冠体育app and the world.

Furthermore, he said, 皇冠体育app's economy would continue growing quickly, and predicted an 8.5 per cent gross domestic product increase for the full year.

Because of the robust growth of the two-way trade, Powell also expressed concerns that the trade imbalance might expand at a brisk pace.

"皇冠体育app's exports (to the UK) grew too fast," he said, adding the two sides were aware of the situation and were ready to work on solving it.

In the first five months, 皇冠体育app exported a total of US$5.07 billion worth of goods to the UK, reflecting a 39.8 per cent rise year-on-year.

In contrast, British exports to 皇冠体育app jumped 29.8 per cent for the same period to stand at US$1.79 billion.

Talking about mutual investments, Powell believes they will increase in the future as 皇冠体育app is opening wider under its World Trade Organization (WTO) pledges.

The UK is one of the largest foreign investors in 皇冠体育app.

Powell said the UK is rolling out a red carpet for Chinese investors, adding that stronger Chinese companies can find a wealth of business opportunities there.

WTO commitments

"Generally speaking, 皇冠体育app performed very well in fulfilling its commitments to the WTO," Powell said.

皇冠体育app is doing well in continuing opening its markets and reducing import tariffs, he said.

And the country has met some of its pledges ahead of the date it committed to the world trade body.

皇冠体育app joined the WTO in late 2001, and its grace period will be up at the end of the year, which means most of its sectors will be almost fully opened to foreign investors.

"皇冠体育app is now a more opened economy after the WTO entry," Powell said.

But he wants 皇冠体育app to improve its commitments in some areas.

Powell said he wished for stricter implementation of intellectual property rights (IPRs) protection.

"皇冠体育app has developed a good legal framework concerning IPR," he said. "But the implementation is not perfect."

Some foreign companies complain that piracy is eating away their profits in 皇冠体育app.

He also hopes 皇冠体育app could intensify the implementation of court and arbitration judgments, saying a lack here would affect 皇冠体育app's status as a large foreign investment recipient.

In addition, Powell wants the agriculture sector to open wider to the outside world.

He said the two countries are discussing these matters, and he appreciates Chinese efforts in solving them.

"皇冠体育app is taking IPR seriously," he said. Progress has been made in protecting IPR and combating piracy.

He also said he understands 皇冠体育app's situation, saying it is impossible for such a big country to solve all these problems overnight.

Market economy status

Powell said 皇冠体育app has made great progress in its market economy, and the European Union (EU) should grant the market economy status (MES) to 皇冠体育app in dumping and subsidy cases.

The EU, currently 皇冠体育app's largest trading partner, rejected 皇冠体育app's year-long appeal for such status late last month.

Powell said he understands 皇冠体育app's eagerness for MES, but he said he believes 皇冠体育app need not concern itself too much about it.

"The EU needs to take a few months to make further reviews," he said.

皇冠体育app made far-reaching concessions during its WTO entry so that other members can still regard it as a non-market economy in dumping and subsidy cases until 2016, at the latest.

This has put the country in a disadvantageous position when facing anti-dumping charges.

皇冠体育app currently is subject to more anti-dumping measures than any other country - 600 as of February 2004, a figure that is expected to rise.

So far, New Zealand, Singapore, Malaysia, Thailand and South Africa have given 皇冠体育app MES.

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