China's Guangdong province is facing a grim foreign trade situation as both its imports and exports are showing signs of waning.
The province's exports in October this year grew nearly 8 percent from a year earlier but dropped nearly 9 percent from the previous month, according to information from the International Consultative Conference on the Future Economic Development of Guangdong Province, which kicked off in Guangzhou, the province's capital, on Nov. 14.
The sluggish global economy and complex international conditions have inevitably affected Guangdong’s export-driven economy. Zhu Xiaodan, deputy Party chief and acting governor of the province, said that the province’s total imports and exports during the first six months of the year rose 26 percent from a year earlier to nearly 435.1 billion U.S. dollars.
However, the year-on-year growth rate of its foreign trade volume during the first 10 months of the year declined sharply to 19 percent, with the total volume standing at 744.3 billion U.S. dollars.
Zhu believes that the foreign trade of the Guangdong Province is facing a very large challenge, which is "even larger than the challenge in 2008."
The economic depression of the European Union, which is being worsened by the European debt crisis, is the main factor affecting the foreign trade. Since the beginning of the third quarter of 2011, Guangdong province's exports to the European Union have slowed.
The total volume of Guangdong province's export to the European Union in the first ten months of 2011 was about 60 billion U.S. dollars, up 11.3 percent compared to that of the same period in 2010, but it was 9.2 percentage points lower than the overall export growth rate of the province.
"Therefore, if the European debt crisis continues, our exports will have to face relatively large pressure for a certain period of time," Zhu said.