Foreign trade in Guangdong, China's largest province in terms of foreign trade volume, declined by 13 percent year-on-year to US$53.35 billion in November, according to local customs figures.
This shows that the economic situation in this province is worse than the overall one in the country. China's exports in November fell by 2.2 percent to US$114.9 billion, the first monthly decline in seven years, the Customs bureau said last week.
Analysts say the decline is due to the high proportion of traditionally labor-intensive industries in the province. Labor-intensive industries have been vulnerable this year due to rising labor and raw material costs, fast appreciation of the yuan and weak demand in developed economies.
Zhong Haosen, a manager at a textile export company, said the orders his company received have dropped by 30 to 40 percent compared to last year and it is getting more difficult to bargain with foreign buyers. Zhong estimates the next year will be even harder as a result of overall weak demand.
Exports to Latin America are the only silver lining amid the overall decline. From January to November, exports from Guangdong to Latin America increased by 24.5 percent to US$22.23 billion. Brazil is the largest buyer, and trade to Venezuela, Peru, and Puerto Rico is also increasing quickly. Analysts say trade with these countries has large potential since the bilateral trade between China and Latin America by now only takes 3.5 percent of the total.
(China Daily December 15, 2008)
