China's foreign trade growth target difficult to reach

China will have to overcome many difficulties in order to achieve the 8-percent foreign trade growth target set for 2013, state-run Xinhua News Agency reported Tuesday, citing a government official. "The sharp slowdown in foreign trade growth seen in May reflects the grim and complicated trade outlook for 2013," Commerce Ministry spokesman Shen Danyang was quoted as telling at a press conference in Beijing. China's foreign trade growth slowed sharply in May, partly due to government rules to curb capital inflows disguised as trade payments. Exports inched up just one percent year on year to USD 182.8 billion, while imports declined 0.3 percent to USD 162.3 billion, according to customs data. "The rising yuan and weak external demand have negatively impacted exports, citing a survey of more than 1,000 companies that account for roughly 8 percent of China's total exports," said Sheng. Some 73.4 percent of respondents blamed the rapid appreciation of the yuan for decreasing export demand, while 72.6 percent cited subdued overseas demand as a major contributor to the slowdown, according to Shen.