Trade surplus set to shrink further

China will face increased pressure to balance its trade foreign trade in 2002, according to a report by a foreign trade ministry think tank reported by Xinhua. The report commented that China’s exports are facing difficulties because of the downturn in the world economy. Exports increased faster in the first half of the year and then slowed down, with the growth rate decreasing month by month. Exports to newer markets are booming but not by enough to make up for the decline in exports to traditional markets. Among product categories, there has been a marked decrease in exports of machinery and electronic products, and a downturn in other bulk goods exports.