China's exports of mechanical and electrical products will slow down and face increased pressure in 2009, especially in the first half of the year when the export growth rate may fall back sharply and some sectors may even suffer from negative growth, a senior official with China's Ministry of Commerce said on February 2. However, in the long run China will continue to maintain a comparative advantage in such products.

 

Mechanical and electrical products have been China's largest export commodities for 14 years and accounted for 57.8 percent of China's total exports in the first 11 months of 2008.

 

Zhang Ji, Director General of the Department of Mechanic, Electronic and Hi-tech Industry, said that nearly 60 percent of Chinese mechanical and electrical products are directly or indirectly exported to the US, EU and Japanese markets. Since the three large economies have fallen into deep recession, it has become more difficult for emerging markets and developing countries to export to those markets.

 

According to a recent survey, noted Zhang, China's exports of mechanical and electrical products will slow down and face increased pressure in 2009.
However, he is confident about the further expansion of China's mechanical and electrical products on the world market. Firstly, Chinese products still mlment as well as safe payment settlement. It has been announced, for example, that starting on January 1, 2009, export tax rebates for 553 mechanical and electrical products with advanced technologies and high added value have been raised.

 

China will also establish bilateral technological cooperation mechanisms with 20 major counties. It will welcome qualified domestic and foreign insurers to participate in the operation of short term insurance, and push forward export of large-scale, complete equipment sets.

 

Moreover, China will promote imports, particularly the import of advanced technologies, key equipment and components. It will make further efforts to urge the US and EU to relax controls on exports to China, as well as promoting trade facilitations.