Beijing positive on foreign trade

China signs FTA with Chile

FE Team | Published: April 19, 2018 23:37:45

BEIJING, Apr 19 (Xinhua): China's foreign trade outlook remains positive despite seasonal fluctuations and uncertainty arising from protectionism, the Ministry of Commerce (MOC) said Thursday.
"The trend of steady development with a positive outlook for the country's foreign trade has not changed," MOC spokesperson Gao Feng told a press conference.
He said the trade deficit recorded last month was mainly due to the Spring Festival, which affected production and exports.
China posted a trade deficit of 29.78 billion yuan (about 4.75 billion U.S. dollars) in March, the first monthly deficit since February 2017.
Growing global demand amid a recovering world economy, as well as China's sound economic fundamentals and supply-side structural reforms, will support foreign trade, Gao said.
The International Monetary Fund earlier this week forecast global economic growth of 3.9 per cent this year. Last week, the World Trade Organisation predicted global trade to remain strong, with merchandise trade volume expected to expand 4.4 per cent in 2018.
However, unilateralist and protectionist actions by some individual countries have brought uncertainty to the global trade, had adverse effect on companies' expectations, and hurt the multilateral trade system, Gao said, adding China will work for sustained, healthy and balanced development of foreign trade.
Meanwhile, in geographical terms, Chile marks the farthest point from China, but the two countries have succeeded in forging a free trade agreement (FTA) that has brought them closer, and Europe in the bargain.
European firms eyeing China's market have opened plants in the South American country in hopes of taking advantage of Chile's trade deal with China.
Brueggen, a German cereal maker in business since 1868, recently invited Liu Rutao, economic and commercial counselor of the Chinese Embassy in Chile, to tour its Chilean plant.
According to Liu, the FTA between China and Chile is benefiting businesses not just in these two countries, but also in other parts of Latin America and even Europe.
Jose Manuel Ibanez, director of Brueggen America, told Xinhua: "China is very important to us. We developed this plant along with our partners in order to supply Chile, and also the rest of Latin America and the Asia-Pacific."
In 2015, Brueggen partnered with Latin American Foods in Chile, giving rise to Brueggen America, which aims to produce goods in Chile for China's market.
According to Ibanez, the idea is to replicate Chile's strong and long-running trade ties with China on homegrown products such as wine, copper and fruits.
Previously, Brueggen operated plants only in Germany, Poland and France, with the German facility producing cereals for the Chinese market.