China's foreign trade this year is forecast to reach US$1 trillion, up 17 percent on a year-on-year base, according to a report released in Guangzhou recently by the Ministry of Commerce and the International Trade Economic Cooperation Institution.

The report predicted that the country's export will reach US$505 billion, up 15 percent while import reaching US$495 billion, up 20 percent.

The report said that there are rooms for rapid development for the country's export, as world economy is expected to keep a rapid momentum. The World Trade Organization predicted a 7.5 percent of growth rate in world trade volume this year, three percentage points higher than in 2003.

Besides, the problem of tariff refund for export companies has been solved, easing their fund strain, said Li Rongcan, an official with the ministry.

However, complicated international situation also poses potential threat, such as the foreign exchange fluctuation for major currencies, high price of oil and the shadow of terrorism. The price increase of upstream products domestically will also lag the export behind to some extent, said the report.

Driven by domestic investment demand, China's import will run on a high level this year, said the report, noting that the growth rate for import will be decided by the development of domestic investment and the situation of macro-economic readjustment.

In the first quarter of this year, China reported US$239.8 billion of foreign trade, up 38.2 percent over last year, in which, export reaching US$115.7 billion, up 34.1 percent, and import reaching US$124.1 billion, up 42.3 percent.

(Xinhua News Agency May 6, 2004)