China has 87.5 bln USD of trade deficit with E. Asian regions

Chinanews, Beijing, July 18 – Although generally speaking, China has a large trade surplus with other countries, its trade with East Asian regions in particular are in deficit. The deficit is as large as 87.5 billion US dollars, said Liao Xiaoqi, deputy minister of commerce.
He made the statement while attending the 2007 East Asian Investment Forum held in Beijing last Saturday.
China mainly imports raw materials and spare parts from East Asian countries. All these raw materials and spare parts, after being processed or assembled, will be exported to the European market. China has become the largest export market for South Korea, the second largest export market for Japan, the third export market for Thailand, and the fourth export market for Indonesia, Singapore, the Phillipines and Malaysia. Chinese economic development has brought opportunities for all East Asian countries, Liao said.
He said that China attaches great importance to regional economic cooperation. In 2010, China will establish a free trade zone with ASEAN countries. China has also signed agreements to establish a free trade zone with Pakistan and Chile and the agreement is being implemented. At present, China is working to sign agreements to establish a free trade zone with such countries and regions as New Zealand, Australia, the Gulf Cooperation Council, Singapore, and Iceland. The number of free trade zones that China has established or is working to establish with other countries and regions has already reached 11. The 11 free trade zones cover 28 countries and regions and trade activities with these countries account for one-fourth of China’s total export volume.
At present, China has entered into a fast round of expansion in its overseas investment activities. Over the past three years, China’s direct investment at overseas market has increased at an annual rate of 70% or more, making China now one of the biggest investors in the world. By the end of last year, China’s investment activities at overseas market covered 160 countries and regions and its total investment reached 13 billion US dollars, Liao noted.