China Contributing Greatly to Surging World Trade

The International Monetary Fund expected the value of world exports to reach $10.6 trillion in 2004, an increase of 15.3 percent over 2003. This would be the highest growth rate since 1995, when the value rose 16.7 percent. Much of this increase can be attributed to China's growing influence in rising world trade.

Trade in oil, steel, and minerals expanded in 2004, influenced by growth in Chinese construction and manufacturing sectors. China represented more than 20 percent of the increase in world trade volumes during 2004, and its share in world exports nearly doubled during the preceding four years, rising from 2.8 percent to 5.8 percent. Its performance continues to be fueled by its relatively recent accession to the World Trade Organization (WTO) as well as by rapid rates of investment and consumption.

China, the largest importer of soybeans, is expected to import 23 million tons in 2004/2005, more than twice as much as in 2001/2002. The volume of world soybean exports during 2004/2005 was expected to rise 16 percent over the previous year, reaching 65 million tons. The increase will be mainly in response to growth in soybean plantings spurred by a spike in soybean prices between mid-2003 and early 2004. This occurred because of droughts in the United States and Brazil—the two largest soybean producers—combined with increasing demand from China.

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Reference
"World Trade Rises Sharply," in Vital Signs 2005, pp. 46-47

Links
International Center for Trade and Sustainable Development
http://www.ictsd.org/

World Trade Organization
http://www.wto.org