Shenzhen's trade with the Association of Southeast Asian Nations (ASEAN) surged 41.2 percent year-on-year to US$3.01 billion in January, according to Shenzhen Customs.
The growth was attributed to the establishment of the China-ASEAN free trade area, which became effective Jan. 1, exempting approximately 7,000 products from duties.
The city’s imports from ASEAN countries jumped 49 percent in January, reaching US$1.46 billion. Exports to ASEAN members rose by 34.6 percent to US$1.55 billion.
The trade pact was an impetus for the development of China’s export market and could contribute to the reduction of the country’s dependence on the EU and U.S. markets in terms of exports, customs said.
High-tech and mechanical products dominated exports, according to customs.
Fruit imports from the ASEAN saw a 18.9 percent increase in January to reach more than US$26 million, which dealt a heavy blow to domestic fruit suppliers.
Customs analysts cautioned that labor-intensive industries make up a large proportion of the economies of both China and most ASEAN countries, which means exporters from both sides have to compete in the same areas.
The establishment of the free trade area could lead to fiercer competition among counterparts and a heavy influx of competitive ASEAN products to China, the analysts said.
The removal of the tariff barrier could discourage some ASEAN enterprises from building factories in China. These same enterprises could instead increase their exports to the country.
