But exports to Europe and America still matter most
With protectionist tensions rising in China's traditional export markets and competition in the domestic market intensifying, the country's exporters have been expanding rapidly into new territories. However, demand from the US and EU will continue to dictate the fortunes of China's external sector for some years to come.
China's exporters put in another sterling performance in 2006—merchandise exports climbed 27.2% from 2005 to US$969bn. Once again, this export growth significantly outpaced the 20% growth seen in imports. As in previous years, Asia accounted for the largest proportion of exports, with 47% of the total. Asia actually recorded a trade surplus with China of some US$70bn, but this picture is somewhat distorted by the role played by entrepôts such as Hong Kong. Hong Kong alone took 16% of Chinese exports, but shipped most of them onwards to consumers in other larger markets. Africa, where through-trade played a less important role, was a net exporter to China, recording a surplus of US$2.1bn.
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