World Trade Organization (WTO) yesterday issued a report saying that China is likely to surpass Germany next year and becomes the world's second largest trade partner, after the US.
The report points out that China has become an important market for major commodities. Compared to the global trade trend, China's export growth accelerated and bucked the bearish trend in the world. The report also points out that the end of the textile quotas at the beginning of 2005 has increased competition among developing countries.
The report says that world merchandise trade growth was 6 percent in last year. Germany in 2003 surpassed the US as the world's largest exporter. China joined the WTO in 2001, and ranked the third in 2004, higher than the ninth in 1999.
The report points out that the US trade deficit reached US $783 billion last year, equivalent to 8 percent of the total world trade, leaving the US more dependent on foreign investment to balance capital flows.
Meanwhile, China's trade surplus hit a record in October of $23.8 billion and imports touched a record low in 15 months. The report said that between the US and China, the trade deficit this year would be higher than last year's record of $201.6 billion, rising 6 percent.
Fibre2fashion, News Desk - China
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