XN000022-1996-06-28 — Page 17

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Renewal of China's MFN trading status

The Secretary for Trade and Industry, Miss Denise Yue, welcomed the US House of Representatives' vote for the renewal of China's Most Favoured Nation (MFN) trading status this year.

On June 27, the House rejected a draft resolution to disapprove the President's decision to extend China's MFN status for another year. This in effect means the end of this year's debate on the matter.

"We are very pleased with the early conclusion of the debate. As China and US are our largest trading partners, we are naturally delighted that China's MFN status in the coming year is assured. This will provide a very useful basis for our businessmen to continue to plan their businesses with China and the US," Miss Yue said.

End

External trade figures for May

In May 1996, re-exports grew only moderately over a year earlier, while domestic exports fell. Taken together, total exports still showed a small positive growth. Imports decreased over a year earlier. These are shown in the external trade figures for May released by the Census and Statistics Department today (Friday).

The value of total exports (comprising re-exports and domestic exports) increased by 1.1% over a year earlier to $117.9 billion in May 1996. Within total exports, the value of re-exports rose by 3.8% to $100.3 billion. The value of domestic exports decreased by 12%, to $17.6 billion. Meanwhile, the value of imports decreased by 2.6% over a year earlier to $129.9 billion in May 1996.

As the value of total exports in May 1996 was smaller than that of total imports, a visible trade deficit of $12 billion, equivalent to 9.2% of the value of imports, was recorded.

This was nevertheless considerably smaller than the deficit of $17 billion, equivalent to 13% of the value of imports, in April this year; as well as the deficit of $16.8 billion, equivalent also to 13% of the value of imports, in May last year.