According to the requirements of market economy, and in line with its obligations as a WTO member, China is establishing a stable and transparent economic management system involving foreign countries, and creating a fair and foreseeable legal environment. The newly revised “Foreign Trade Law of the People’s Republic of China”, which has become effective as of July 1, 2004, is the basic law guiding China’s foreign economic exchange and trade, as well as the legal basis for China to establish its economic and trade management system involving foreign countries, and the basis for China to establish its foreign economic cooperation management system and for the government to wield its power in economic and trade field. And on this basis, a series of supporting measures and rules will be promulgated.

China ranked third in volume of imports and exports, as in 2004. China’s portion of world trade increased. In 2001, China’s import and export volume exceeded 500 billion US dollars for the first time.

 China’s import and export volume reached a total of 1.4221 trillion dollars, up 23.2% from 2004. Exports reached 762 billion dollars, up 28.4%. Imports reached 660.1 billion dollars, up 17.6%. Exports exceeded imports by 101.9 billion US dollars (see Chart 6). Within China’s import and export volume, the total import and export volume of foreign enterprises was 831.7 billion US dollars, up 25.4% from 2004. Of foreign enterprise trading, exports reached 444.2 billion dollars, up 31.2%. Imports reached 387.5 billion dollars, up 19.4%.

 

China’s imports and exports in 2005

(Unit: 100 million US dollars)

The European Union (EU) maintained its status as China's largest trading partner, with bilateral trade volume reaching $217.31 billion dollars in 2005. The United States was China's second largest trading partner, with bilateral trade volume reaching $211.63 billion dollars. Japan was China’s third largest trading partner, with a bilateral trade volume of 184.44 billion dollars. The position of the EU, the United States and Japan as China’s top three trading partners will not be changed in the coming few years. These three global partners will dominate China’s foreign trade pattern for the next several years.

China’s trade with its top 10 trading partners, including the EU, the US and Japan, totaled $1422.12 billion dollars in 2005, accounting for 81.5% of the country’s total volume of imports and exports.

China has trade relations with more than 220 countries and regions at present. The top 10 trading partners are: the EU, the US, Japan, Hong Kong SAR, ASEAN, the Republic of Korea, Chinese Taiwan, Russia, Australia and Canada.

 

China’s imports from and exports to major countries and regions in 2005

(Unit: 100 million US dollars)

Top 10 trading partners

No.	Country, region	2005	change over 2004 ％	Proportion (%)	Proportion change
	Total value	14,221.2	23.2	100.0	0.0
1	EU	2,173.1	22.6	15.3	-0.1
2	US	2,116.3	24.8	14.9	0.2
3	Japan	1,844.4	9.9	13.0	-1.5
4	HK SAR	1,367.1	21.3	9.6	-0.2
5	ASEAN	1,303.7	23.1	9.2	0.0
6	ROK	1,119.3	24.3	7.9	0.1
7	Taiwan, China	912.3	16.5	6.4	-0.4
8	Russia	291.0	37.1	2.0	0.2
9	Australia	272.5	33.6	1.9	0.1
10	Canada	191.7	23.5	1.3	0.0

 

 

Top 10 export markets

No.	Country, region	2005	change over 2004 ％	Proportion (%)	Proportion change
	Total value	7,620.0	28.4	100.0	0.0
1	US	1,629.0	30.4	21.4	0.3
2	EU	1,437.1	34.1	18.9	0.8
3	HK SAR	1,244.8	23.4	16.3	-0.7
4	Japan	839.9	14.3	11.0	-1.4
5	ASEAN	553.7	29.1	7.3	0.1
6	ROK	351.1	26.2	4.5	-0.1
7	Taiwan, China	165.5	22.2	2.2	-0.1
8	Russia	132.1	45.2	1.7	0.2
9	Canada	116.5	42.8	1.5	0.1
10	Australia	110.6	25.2	1.5	0.0

 

 

Top 10 import sources

No.	Country, region	2005	change over 2004 ％	Proportion (%)	Proportion change
	Total value	6,601.2	17.6	100.0	0.0
1	Japan	1,004.5