According to latest statistics export by private sector for the first time exceeded that by state-owned enterprises (SOE) in Zhejiang in 2004, reaching $14.94 billion and up by 88.2 percent over 2003. Private sector in Zhejiang accounts for 21.5 percent of the export by private businesses nationwide.

It was learned that since July 1, 2004 when the approval system of foreign trade license was reformed into registration system the lowering of threshold has greatly boosted the passion of Zhejiang private sector to engage in international trade. From Jan.1 to June 30, 2004 the number of companies that gained foreign trade qualification increased by 2,594. From July 1 to the end of the year another 4,285 were added.

Statistics show that more is exported by private businesses in Ningbo than in any other areas in whole Zhejiang. Following it are Shaoxing, Hangzhou, Jinhua, Taizhou and Wenzhou. The export is dominated by traditional labor-intensive products such as garment and clothing accessories, textile, shoes, mechanical and electrical products and plastic products etc. The EU is still the number one trade partner for the Zhejiang private businesses. The US, ASEAN, Japan, Germany and S. Korea are also the main export markets.

Meanwhile nearly half of the private businesses have their foreign trade licenses stay idle. In order to reduce costs many private businesses hire professional foreign trade firms as agents.

By People's Daily Online