Thursday, October 20, 2011

Indonesia-China Trade Deficit

Bilateral trade between Indonesia and China has become more and more balance. From January to July this year, Indonesia's non-oil trade deficit with China has now been reduced to $3.39 billion.
Import and Export
Figures provided by China's Commerce Department shows that from January to July this year, the total import and export volume of China has exceeded $2022.5 billion. It was an increase of 25.1 as compared with same period last year. This resulted in $ 76.21 billion foreign trade deficit for China. For the month of August China's trade deficit reached $ 17.8 billion.
Not too long ago, Indonesia's Central Bureau of Statistics Director Rusman Heriawan said that during the first seven months of this year, Indonesia's biggest non-oil export market is China; and that Indonesia's non-oil export to China stood as $10.92billion. It took up 11.69 percent of Indonesia's total export volume. Meanwhile, China is also Indonesia's largest source of imports, with import value worth about $ 14.31 billion.
According to data obtained from Indonesia's Ministry of Trade, in Indonesia's non-oil trade with China for the year 2007, Indonesia's non-oil trade has suffered a deficit of $1.293 billion; and for the year of 2010, Indonesia's non-oil trade deficit with China has increased to $5.607billion. But by the end of May in 2011, Indonesia's trade deficit with China has turned $ 2.731billion.
12th Five-Year Plan
The main reason that triggered the rapid growth of Chinese imports is due to the fact that not too long ago, China's 12th Five-Year Plan has outlined its national economic and social development. Subsequently, China has made number major changes in its economic market. One of changes is for China to improve its people's quality of life and so China has stressed on providing supplies to the domestic market. Another reason is that it is China's wish to see the Indonesia-China trade can attain mutual win and mutual beneficial trade balance situation. In this regard, China has upgraded the opening up level of its overseas trade limit, including the optimization of engaging in foreign trade and other measures.
Consumer Price Index
Song Yu, Goldman Sachs Group's economic analyst based in Hong Kong recently said that according to Goldman Sachs Group's research report prepared by Goldman Saches Group's Asia macro economist Song Yu, currently, China's economy is full of confidence in the implementation of its "soft landing" economic policy.
It is expected that for the month of August, China's Consumer Price Index will decrease to 5.9 percent from July's 6.5 percent. The main reason is due to the decrease in the prices of food items. Nevertheless, from August China's real economy growth rate has begun to fall. It is expected that China's real economic growth in August will be decreased to 13.8 percent from July's 14 percent.

No comments: