2. The development of China’s trade and China’s trade surplus 1.1.1 The development of China’s trade after the reform and opening up Since the reform and opening up of China in 1978, China's foreign trade volume began to increase year by year. During this period, driven by the globalization of economy, world trade volume grew at a rapid pace. However, the growth of China's export was so fast that the share of China's export in world trade continuously rose.

3. China ’ s foreign trade in 1982-2011

4. 1.1.2 China’s trade surplus and its causes YearTotalExportsImportsBalance 197820698109-11 1980381181200-19 Table : China ’ s foreign trade,1978-2010 ($ billion ）

5. Total tradeTrade in goodsTrade in Services YearsExportImportBalanceExportImportBalanceExportImportBalance 1982248.0211.536.5223.2192.930.424.818.76.1 1983246.9232.314.6222.3213.98.424.718.46.3 1984289.2300.4-11.2261.4274.1-12.727.826.31.5 1985302.8445.1-142.4273.5422.5-149.029.322.66.6 1986345.5449.3-103.8309.4429.0-119.636.120.315.9 1987436.7455.5-18.8394.4432.2-37.842.323.419.0 1988522.4585.9-63.6475.2552.7-77.547.233.314.0 1989569.9627.2-57.3525.4591.4-66.044.535.78.8 1990678.4574.6103.8620.9533.587.557.541.116.4 1991787.7677.3110.5719.1637.981.268.639.429.3 1992940.5897.942.6849.4805.943.691.192.1 19931027.41155.2-127.9917.41039.6-122.2109.9115.6-5.7 19941373.61314.059.61210.11156.253.9163.5157.85.7 19951672.11567.2104.91487.81320.8167.0184.3246.3-62.0 19961716.21612.0104.11510.51388.3122.2205.7223.7-18.0 19972073.01700.9372.01827.91423.7404.2245.0277.2-32.2 19982075.91667.0408.91837.11402.4434.8238.8264.7-25.9 19992211.01966.7244.31949.31657.0292.3261.7309.7-48.0 Table: China ’ s foreign trade development ( 1982-2011 ， 100 million U.S. dollars)

6. 20002793.52609.5184.02492.02250.9241.1301.5358.6-57.1 20012990.02825.9164.12661.02435.5225.5329.0390.3-61.3 20023649.83412.5237.33256.02951.7304.3393.8460.8-67.0 20034846.04676.1169.94382.34127.6254.7463.7548.5-84.8 20046553.86328.3225.55933.35612.3321.0620.6716.0-95.5 20058358.67431.3927.47619.56599.51020.0739.1831.7-92.6 200610604.08917.91686.19689.87914.61775.2914.21003.3-89.1 200713421.110853.72567.412204.69561.22643.41216.51292.5-76.0 200815771.412905.72865.714306.911325.72981.31464.51580.0-115.6 200913302.111640.31661.812016.110059.21956.91286.01581.1-295.1 201017480.715872.71608.015778.213951.01827.31702.51921.7-219.3 201120808.119800.11008.018983.817434.81549.01824.32365.3-541.0

7. Imports and exports (%) exports (%)Imports (%) Stage Goods&Services Goods Services 1982-201116.11 16.07 16.4515.91 15.96 15.4016.35 16.20 17.51 1982- 1990 11.79 12.01 9.5211.83 12.04 9.8011.75 11.97 9.14 1991-200113.35 12.78 18.8112.90 12.63 15.3213.87 12.95 23.18 2002-201119.12 19.35 17.2319.01 19.28 16.5719.22 19.44 17.77 Table : The average growth rate of China ’ s foreign trade at different stages

8. Balance of China ’ s foreign trade (surplus and deficit) in 1982-2011

9. 1.2 China’s foreign exchange reserves

10. YearsForeign exchangeGDP Percentage （ % ） 1994516.25592.29.23 1995735.977280.110.11 19961050.298560.812.27 19971398.99526.514.68 19981449.5910194.614.22 19991546.7510832.814.28 20001655.7411984.713.82 20012121.6513248.116.01 20022864.0714538.319.70 20034032.5116409.624.57 20046099.3219316.431.58 20058188.722256936.28 200610663.4427129.539.31 200715282.4934940.643.74 200819460.345218.343.04 200923991.5249912.648.07 201028473.3859305.348.01 201131811.487318543.47 Table : China ’ s foreign exchange (1994-2011, 100 million U.S. dollars)

11. GDP Total exports and imports Trade in goodsTrade in services Years Total Dependence (%) Total Dependence (%) Total Dependence (%) 19822031.8459.522.6%416.120.5%43.42.1% 19832284.6479.221.0%436.219.1%43.11.9% 19842574.3589.722.9%535.520.8%54.22.1% 19853066.7747.924.3%696.022.7%51.91.7% 19862978.3794.826.7%738.524.8%56.41.9% 19872703.7892.233.0%826.530.6%65.72.4% 19883095.21108.335.8%1027.833.2%80.52.6% 19893439.71197.134.8%1116.832.5%80.32.3% 19903569.41253.035.1%1154.432.3%98.62.8% 19913794.71465.038.6%1357.035.8%108.02.8% 19924226.61838.443.5%1655.339.2%183.24.3% 19934405.02182.649.5%1957.044.4%225.65.1% 19945592.22687.648.1%2366.242.3%321.45.7% 19957280.13239.344.5%2808.638.6%430.65.9% 19968560.83328.238.9%2898.833.9%429.45.0% 19979526.53773.939.6%3251.634.1%522.35.5% 199810194.63743.036.7%3239.531.8%503.54.9% 199910832.84177.638.6%3606.333.3%571.35.3% Table : China ’ s Dependence upon Foreign Trade (100 million U.S. dollars,%)

12. 200011984.75403.045.1%4743.039.6%660.05.5% 200113248.15815.843.9%5096.538.5%719.35.4% 200214538.37062.348.6%6207.742.7%854.65.9% 200316409.69522.258.0%8509.951.9%1012.36.2% 200419316.412882.166.7%11545.659.8%1336.66.9% 200522569.015789.970.0%14219.163.0%1570.87.0% 200627129.519521.972.0%17604.464.9%1917.57.1% 200734940.624274.869.5%21765.762.3%2509.17.2% 200845218.328677.163.4%25632.656.7%3044.56.7% 200949912.624942.450.0%22075.444.2%2867.15.7% 201059305.333353.456.2%29729.250.1%3624.26.1% 201173185.040608.355.5%36418.749.8%4189.65.7%

13. 1.3 More trade frictions between China and its main export markets 1.3.1 The structure and shares of China’s export markets

14. Country/Regi on 2002200320042005200620072008200920102011 2012.1- 9 Japan14.8813.5612.3911.029.468.388.18.157.677.817.52 Four Asian Dragons  26.8926.0726.11 25.3 0 25.1624.0622.5722.5122.1322.2123.08 EU2.1416.47 18.0 6 18.8 6 19.2020.0920.47 19.6 6 19.7318.7516.75 ASEAN7.247.067.237.277.367.727.988.858.768.969.68 America21.4821.1021.0621.3821.0019.0717.6318.3817.9617.0917.26 Russia1.081.381.531.731.632.332.311.461.882.052.18 Africa2.142.322.332.452.753.063.553.973.803.854.16 Latin America 2.912.713.073.113.724.225.004.755.826.416.74 Table : China ’ s main export markets (%)  The Four Tigers include Malaysia, the Philippines, Thailand, and Indonesia.

15. Country/Regi on 2002200320042005200620072008 200 9 20102011 2012.1- 9 Japan14.8813.5612.3911.029.468.388.18.157.677.817.52 Four Asian Dragons  26.8 9 26.0726.11 25.3 0 25.1624.0622.5722.5122.1322.2123.08 EU2.1416.47 18.0 6 18.8 6 19.2 0 20.0920.47 19.6 6 19.7318.7516.75 ASEAN7.247.067.237.277.367.727.988.858.768.969.68 America21.4821.10 21.0 6 21.38 21.0 0 19.0717.6318.3817.9617.0917.26 Russia1.081.381.531.731.632.332.311.461.882.052.18 Africa2.142.322.332.452.753.063.553.973.803.854.16 Latin America 2.912.713.073.113.724.225.004.755.826.416.74 Table : China ’ s main export markets (%)  The Four Tigers include Malaysia, the Philippines, Thailand, and Indonesia.

16. Cou ntry/ Regi on 199520002001200220032004200520062007200820092010 ASEA N -9.99.510.211.511.211.411.3 10.310.611.1 Euro pean Unio n 13.9 14.613.112.912.110.911.011.111.712.712.1 Four Drag ons 24.225.126.828.627.627.227.325.924.621.921.420.85 Four Tiger s 3.45.86.87.78.48.28.48.69.18.18.28.6 Japa n 22.018.417.618.118.016.815.214.614.013.313.012.7 Unit ed State s 12.210.010.89.28.28.07.47.57.37.27.77.3 Table : China ’ s top import suppliers ( %)

17. RankCountry/RegionVolume($ billion)% Change over 2009 1United States38.5329.2 2Japan29.7830.2 3Hong Kong of China23.0631.8 4South Korea20.7232.6 5Taiwan of China14.5436.9 6Germany14.2434.8 7Australia8.8146.5 8Malaysia7.4242.8 9Brazil6.2547.5 10India6.1842.4 Table : China ’ s top trade partners, 2010 ($ billion)

18. Country/RegionExports Growth rate (%) Import s Growth rate （ % ） American2581.69.6972.67.7 EU2504.6-5.61605.32.1 Hong Kong of China 2241.415.11279.1 ASEAN144716.61441.70.6 Japan1125.14.51362.5-6.5 Korea663.36.81216.21.5 Indian354.9-4.6153.6-11.2 Russia325.814.533613.9 Australia27110.9638.96.1 Taiwan of China257.5-3.8954.61.4 Table : China ’ s trade with major trading partners from January to September of 2012

19. 1.3.2 More frequent trade frictions with the expansion of China’s exports

20. 1.4 China’s foreign trade performance in the first three quarters of 2012

21. (I) Imports and exports recorded a low but steady growth, measures to stabilize foreign trade have given initial results.

23. (II) Exports to developed economies clearly differentiated and exports to emerging markets recorded a fast growing

24. Country/regi on Exports Change （ % ） Imports Change （ % ） Trade balance Total 14953. 9 7.413470.84.81483.1 EU2504.6-5.61605.32.1899.3 US2581.69.6972.67.71609.0 ASEAN1447.016.61441.70.65.3 Japan1125.14.51362.5-6.5-237.4 China HK2241.415.1127.09.12114.4 South Korea663.36.81216.21.5-552.9 Russia325.814.5336.013.9-10.2 China Taiwan 257.5-3.8954.61.4-697.1 India354.9-4.6153.6-11.2201.3 Australia271.010.9638.96.1-367.9 Table: China ’ s trade with major partners, 2012.1-9 (US$100m)

25. (III) Central and western region recorded a sustained and rapid growth in exports despite a slowdown in eastern region

26. Region Year& item TotalEastern elevenCentral eightWestern twelve Value Share （ % ） Value Share （ % ） Value Share （ % ） 2000 Imp & Exp 4743.04368.292.1203.14.3171.73.6 Exports 2492.02268.891.0124.05.099.34.0 Imports 2250.92099.493.379.13.572.43.2 2010 Imp & Exp 29740.026863.690.31592.55.41283.94.3 Exports 15777.514215.290.1842.25.3720.14.6 Imports 13962.412648.490.6750.35.4563.74.0 2011 Imp & Exp 36420.632347.088.82233.76.11839.85.1 Exports 18986.016749.388.21157.46.11079.35.7 Imports 17434.615597.789.51076.46.2760.54.4 2012.1-9 Imp & Exp28424.724894.987.61839.76.51690.15.9 Exports14953.912896.686.2997.36.71060.17.1 Imports13470.811998.389.1842.46.3630.04.7 Table: Foreign trade growth in eastern, central and western region since 2000 （ US$100m ）

27. Notes ： Eleven eastern provinces (cities) include Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Hainan ； eight central provinces include Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan ； twelve western provinces ( cities and autonomous region ) include Inner Mongolia, Guangxi, Sichuan, Chongqing, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang.

28. (IV) Imports of agricultural products grew rapidly and import growth in electromechanical products dropped

29. Domestically, a series of policy measures in expanding domestic demand and stabilizing overseas demand have being steadily implemented and began to produce effects, China’s economy on the whole moves smooth. The 18 th Congress of the Communist Party of China will further motivate the initiative for accelerating development, and this will be conducive to further promoting a steady and rapid economic growth. China’s economic growth in 2013 is widely expected by IMF and other organizations to outpace that of 2012. However, the foundations of a stable growth remains shaky, growth in domestic demand is conditioned by systematic and institutional obstacles, overcapacity in some sectors remains serious and the enterprises still face greater difficulties in production and operation.