Exporters in the processing trade should expand sales in the domestic market to offset weakening overseas demand as the global market remains bearish in the second half, a senior trade official said on Tuesday.
"Global conditions have been challenging largely due to the still-sluggish demands in major developed economies," Jiang Yaoping, vice-minister of commerce, said at a press conference in Beijing.
Europe, which was the third-largest destination for China's processing-trade exports, saw a sharp decrease of 21.2 percent year-on-year in July's export volume, he said.
"We estimate the second half will continue to see a complex and rigorous external environment, but we will strive to accomplish the growth target set for this year," Jiang said.
China set a 10 percent target for export growth in 2012, but latest trade data don't provide much reason for optimism.
In the first seven months of this year, the export volume of the processing trade rose 4.4 percent, 3.3 percentage points lower than the increase in overall exports, according to the Ministry of Commerce.
The processing trade is the most sensitive (sector) and directly reflects market demand," Jiang said.
Guangdong province, where processing trade volume accounts for 55 percent of overall trade, and a quarter of the nation's total processing trade volume, faces more downward pressure in August and September, said Zhao Yufang, deputy governor of the province.
Facing the difficulties, China will have to create a stable policy environment, and promote technical upgrade and industrial transfer of the companies involved in the processing trade business, and meanwhile, a shift to the domestic market, Jiang said.
Premier Wen Jiabao and Vice-Premier Wang Qishan have called for more support for processing trade enterprises to expand sales in the domestic market, and encouraged more trade processing products to be sold on the domestic market.
However, "China lacks channels for such products to enter the domestic market as there isn't a national platform to facilitate such a transfer," Jiang said.
But that situation may soon change, as the first China Processing Trade Products Fair, co-organized by the Ministry of Commerce and five other bodies, will be held in Dongguan, Guangdong province, from Sept 16 to 19.
