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Larger Deficit in IC Chip Trade

Ports in south China's Guangdong Province reported imports of 16.12 billion integrated circuit (IC) chips, valued at 11.24 billion US dollars, in the first five months of this year, a year-on-year growth of 8.2 percent and 14.4 percent, according to local customs sources.

 

In the January-May period, the IC exports via ports in the province were 1.69 billion chips, valued at 550 million US dollar, up 9.5 percent and 21.4 percent year-on-year. The trade deficit amounted to 10.68 billion US dollars, up from 9.37 billion US dollars a year earlier.

 

Of the total IC imports, the sources said, foreign-invested enterprises made up 8.84 billion US dollars, or 78.6 percent. Their imports increased by 22.8 percent, and their share of the total rose by 5.4 percentage points over the year-earlier level.

 

The sustained growth in IC arrivals was attributable to mounting demand on the Pearl River Delta, industry insiders said.

 

Guangdong accounts for approximately 40 percent of China's total foreign trade in IC chips.

 

(Xinhua News Agency June 21, 2005)

 

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