China's Unfavorable Trade Balance of the Agricultural Products Was Further Incre

Source: General Administration of Customs' Website

According to the customs statistics, in January-October, 2008, China's agricultural products (including the aquatic products and marine product) accounted for the import and export volume of USD 82.67 billion, increasing by 32.4% as compared with that last year (similarly hereinafter); the export hereof accounted for USD 32.98 billion, increasing by 14.5%; the import hereof accounted for USD 49.69 billion, increasing by 52.5%. In October, monthly import accounted for USD 3.9 billion, increasing by 11.5% and decreasing by 32.5% at the link relative ratio. The export hereof was USD 3.3 billion, increasing by 13.3%.

Main features of China's import and export of the agricultural products from January to October this year:

I.       The overall trade deficit of the agricultural products was quickly expanded. In October, the trade deficit fell obviously after a rise. In January-October this year, China's trade deficit of the agricultural products reached USD 16.71 billion, increasing by USD 12.93 billion as compared with that at the same period last year, the major growth of 3.4 times. As per the situation at each month, we could see that the trade deficit of the agricultural products was continuously expanded from USD 910 million in January to USD 2.38 billion in September and declined sharply to USD 600 million in October.

II.      The major varieties for export are increased quickly. In January-October this year, China's export of major agricultural products grew quickly, among which the export of the aquatic products, marine products, fresh & dry fruits and nuts, meat and variety meat respectively accounted for USD 4.18 billon, USD 1.35 billion and USD 1.35 billion, increasing by 11.1%, 37.3% and 30.7%. The vegetable export accounted for USD 3.42 billion, only increasing by 0.1%. Also, due the influence from the state's three policies such as cancellation of the export rebate, levying of provisional duty and implementation of export quotas, the foodstuff export accounted for 3.222 million tons, decreasing sharply by 67.3% and accounting for USD 1.78 billion, drop by 27.6%.

III.   Import of the foodstuff, edible vegetable oil and grape wine, etc. was rapidly increased. In January-October this year, China imported the foodstuff of USD 19.87 billion, increasing by 1.1 times, among which the soybean import was USD 18.73 billion, increasing by 1.2 times and accounting for 94.2 % of the gross import value of the foodstuff at the same period. The edible vegetable oil import reached USD 7.63 billion, increasing by 52.9 %; the grape wine import reached USD 710 million, increasing by 55.4 %. As the major raw materials for processing export of the domestic aquatic products and marine product, the frozen fish import reached USD 2.26 billion, increasing by 1.9%. Also, the cotton import reached USD 3.11 billion, increasing by 10.1%; the wool import reached 1.43 billion, drop by 2.4 %.

IV.    Both the increase and decrease of export were available for the principal trade partners. January-October this year, The agricultural products of USD 5.33 billion, USD 4.18 billion and USD 3.67 billion were respectively exported by China to the European Union, USA, ASEAN, so as to increase by 23.6%, 21.7% and 22.3%. The export hereof was dramatically increased to Africa and Latin America, accounting for USD 1.28 billion and USD 1.12 billion and increasing by 51.4% and 58.9% respectively. The incident of "poisonous dumpling” in Japan had a strong impact on the reputation of China's agricultural products at nearby market. In January-October, China exported the agricultural products of USD 6.19 billion, decreasing by 8.3 %. Also, the export to Hong Kong and Taiwan was USD 2.77 billion and USD 580 million, increasing by 15% and 23.7%.

V.     China mainly imported the agricultural products from the developed agricultural countries (regions). Currently, China's major imported varieties are provided with obvious regional features. For example, the soybean was imported from USA, Brazil and Argentina; the rice was imported from Thailand; the edible vegetable oil was imported from ASEAN; the wool was imported from Australia; the grape wine was imported from France. USA was the largest source of the agricultural products for China. In January-October, the agricultural products of USD 11.37 billion were imported from USA, increasing by 58.4%; the agricultural products of USD 8.04 billion, USD 3.13 billion and USD 2.52 billion were respectively imported from ASEAN, European Union and Australia, increasing by 37.4%, 37.7% and 19%. The agricultural products of USD 8.01 billion and USD 7.02 billion were respectively imported from Brazil and Argentina, increasing by 1 time and 99.4%.

VI.   Shandong, Guangdong and Zhejiang are the major exporters for the agricultural products, while Beijing, Shandong and Guangdong are the major importers for the agricultural products. In January-October, the agricultural products of USD 8.23 billion, USD 3.72 billion and USD 2.81 billion were respectively exported by Shandong, Guangdong and Zhejiang, increasing by 13.2 %, 13.4 % and 19.3 %. The export from the above three provinces accounted for 44.8 % of China's gross export value of the agricultural products. At the same period, the agricultural products of USD 7.66 billion, USD 7.57 billion and USD 7.14 billion were respectively imported by Beijing, Shandong and Guangdong, increasing by 1.2 times, 38 % and 42.4 %. The import from the above three provinces and cities accounted for 45 % of China's gross import value of the agricultural products.

On the strength of top quality and low price, China's agricultural products such as vegetable and poultry meat lead the international market. However, currently, China's agricultural products still face many problems in the growth of foreign trade. The issues hereof mainly include five aspects as below: I. The control for both quality and safety of the agricultural products shall be further strengthened; II. The technical rampart abroad would block the export of the agricultural products for a long period of time; III. The supporting system for the export has not been established; IV. Low processing level for the agricultural products, poor technology innovation and lack of brand products; V. Power of fixing the price for the agricultural products in a large quantity is unavailable.

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