Among the recent forecasts by the Ministry of Commerce on various foreign economic and trade achievements this year one of the most attractive statistics is that China's mechanical and electrical product export is expected to reach or even exceed US$300 billion, nearly an increase of 32 percent with a net increase value of US$70 billion.

As early as the beginning of this year enterprises were faced with the pressure of rising export costs due to the implementation of new export tax-rebating policy. With the increase of international trade protectionism and barriers many people were once worried as to whether mechanical and electrical products accounting for half of export could be kept on growing at a high speed.

The results of a mid-year check indicate a mechanical and electrical product export value reached more than US$140.6 billion in the first half of the year, up 10.6 percentage points, higher than that of national foreign trade export and also far higher than those of agricultural products, mineral products, and textile and chemical products during the same period.

The data from the electromechanical products department of the Ministry of Commerce show that the varying factors such as tax-rebating policy didn't have much impact on the export of mechanical and electrical products. It further demonstrates the advantages of electromechanical products in high technological contents, high added value, and strong risk-proof capability with good export prospects.

For example, in the first six months of this year export growths of products such as LCD display, LC color TV sets and handsets were all in three digits. Export growths of integrated circuits and microelectronic components also exceeded 82 percent. The export of plasma color TV sets made a breakthrough. A group of domestic electromechanical industries with new and high technologies were formed with an annual export value capacity of more than US$20 billion. By upgrading, the prices of these products are raised in the international market, effectively boosting the growth of the whole electromechanical industry.

Apart from this, the export of nine mechanical and electrical products including automobile and its spare parts, printed circuits, numerical-controlled machine tools, program-controlled telephones, optical communications equipment and railway locomotives increased by 37 percentage points higher compared with the corresponding period of last year. The export of whole automobile (including complete sets pf parts) alone increased by 309 percent over the same period of last year. These indicate that export structure is being optimized with each passing day.

It is no doubt that the mechanical and electrical products are the driving force and growth sources to boost the growth of the foreign trade. If the trade of electromechanical products slow down what is called "import and export in the big way" would be affected considerably. The export of US$300 billion is a new stage, which equaled approximately the total foreign trade volume in 2002. Whether this stage can be passed has a direct bearing on whether foreign trade volume can exceed US$1 trillion this year. Of course the statistics predicted by the authoritative department is by no means a mere attractive estimation. It is completely practicable. As for now favorable factors that keep electromechanical product export growing are fourfold.

First, the international market demand keeps on increasing. Domestic macro-controls show some preliminary effects with a sound foundation for economic operation. Second, trade structure is becoming increasingly stable with effective internal growth mechanism. Third, situation of foreign investment is encouraging and industrial shift of international manufacturing is picking up speed. Fourth, key export industries and core enterprises make up a large proportion with a high growth rate. Production continuity and risk-resisting capability are good. Generally speaking, the foundation for export is expanding. Even when some specific fluctuations occur it won't reverse the growing trend of the whole electromechanical industry. It is believed that in the months to come mechanical and electrical product export will keep on increasing and eventually bring us the good news of exceeding the crucial US$300 billion point.

By People's Daily Online