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Record trade surplus

(China Daily)
Updated: 2008-10-15 14:32

The jump of China's trade surplus in September is definitely stronger than expected.

While the global economy became increasingly shaky as the financial crisis worsened in developed countries, few would have predicted that China's monthly trade surplus could reach a new high of $29.3 billion last month.

Though the largest monthly trade surplus still falls short of stopping the country's net export in the first three quarters from shrinking year over year, it does give a huge boost to our confidence in the competitiveness of Chinese exporters.

The continuous expansion of trade surplus in the past three months does not detract from all the difficulties the sector has faced so far this year.

Not only have a stronger Renminbi and reduction of export tax rebates for energy-intensive and polluting products considerably squeezed Chinese exporters' profits. The weakening external demand and rising domestic labor and raw material cost have contributed largely to a fast deceleration in the growth of trade surplus early this year.

However, the remarkable performance in the third quarter does indicate that China's export sector may be more resilient than many people had expected.

When the growth of trade surplus significantly slowed early this year, there were many calls for government help to cushion exporters. Media reports of textile manufacturers struggling for overseas orders also added to the sense of urgency.

Fortunately, against the risk of an export slowdown, Chinese policymakers have chosen to stick to higher environmental and energy efficiency standards which are essential to sustainable growth of the national economy.

Now, the recent surge of trade surplus proves both the necessity and feasibility to pursue green growth of export. In spite of all the unfavorable conditions, China's export engine is still working and even works better than most people expected.

Of course, the new record monthly trade surplus does not guarantee too much optimism given the severity of the ongoing global financial crisis and its potential impact on the world economy. The near future for China's trade growth actually looks more gloomy as all its major trade partners are undergoing economic slowdown.

Yet, the key problem for exporters is not whether they can maintain their market share amid a global slowdown. The strong growth of trade surplus speaks volumes.

Instead, it is if they are able to turn themselves greener and more energy-efficient to facilitate China's pursuit of sustainable development that will determine their future. The record trade surplus is also a good clue in this regard.