Processing Trade Makes Surplus Surplus And Foreign Trade Urgent To Change.

In October, another 27 billion 51 million US dollar surplus landed in China.

However, more than half of the huge surplus is from processing trade.

The surplus has not been fully loaded into the pockets of our residents, but has exacerbated the contradiction between domestic resources and excess liquidity and international trade frictions.

According to the data released by the General Administration of customs, the general trade balance in October was only 10 billion 645 million US dollars, accounting for only 39%, while the rest were mainly processed trade and a small amount of other trade surplus.

The trade surplus reached two US dollars, accounting for 89% of the total volume of the "only processing" and "incoming processing" of the 24 billion 200 million trade.

In recent years, processing trade has taken up half of the growing trade surplus.

In the first half of this year, China's trade surplus amounted to US $112 billion 530 million, while the cumulative surplus under processing trade amounted to US $110 billion 500 million.

The processing trade was mainly completed by foreign-invested enterprises. In the first half of this year, foreign trade enterprises accounted for 84.2% of processing trade import and export, while state-owned enterprises accounted for only 10.2%.

Experts believe that the high level of processing trade makes the scale of the surplus look huge, but it is greatly reduced by the real benefit level of the people.

China has become a "port" for temporary profits of foreign-funded enterprises.

From the perspective of growth rate, the growth rate of imports and exports in October was "reversed", the export growth rate reached 22.3%, lower than the growth rate of imports by 25.5%, but the total surplus in October was still high.

The reason is that the growth of imports is faster than that of exports, mainly in general trade, rather than in the processing trade.

In October, the growth rate of general trade exports and imports was 21.2% and 37.2% respectively, and the growth rate of exports was much lower than that of imports.

The export growth of processing trade is still slightly higher than that of import. The largest import and export growth rate of the "import processing trade" is 19.7% and 15.8% respectively.

This determines that the surplus is still very large in October.

The huge trade surplus is, of course, unpopular.

Because no matter how foreign investors deal with their profits, such as bank deposits, reproduction and investment, as long as their income does not remit abroad, they will still be pformed into China's domestic liquidity, boosting asset prices, increasing liquidity pressure and increasing the difficulty of monetary policy.

At the same time, the huge surplus has become the "handle" of the international community's accusation of China's exchange rate policy, and has caused various trade frictions and protectionism.

The reason why foreign enterprises are willing to start business in China is that they mostly take into account the low cost of resources and labor in China.

If these so-called "advantages" continue, they will only aggravate the burden of environment and resources.

Therefore, in order to truly achieve the goal of balance of payments, we must change the current mode of foreign trade growth.