2. FDI and processing and assembling trade FDI’s contribution to China’s exports

3. Year Share of foreign-investment enterprises (%) Share of domestic enterprises (%) 200562.637.4 200657.842.2 200752.947.1 200845.254.8 200952.247.8 201050.549.5 201141.558.5 Table: The share of foreign-investment and domestic enterprises in China ’ s export growth （ 2005-2011 ）

4. 200620072008200920102011 expo rt impo rt expor t imp ort expo rt imp ort expo rt imp ort expo rt imp ort expor t impo rt Total 969. 08 791.61 1218.0 2 955. 82 1428. 55 1133. 09 1201. 66 1005. 56 1577. 93 1394. 83 1898. 60 1743.4 7 State- owned enterprise 191.3 5 225.2 4 224.8 1 269. 72 257. 23 353. 81 190. 99 288. 47 234. 36 387. 56 267.2 2 493.4 0 Foreign- owned enterprise 563. 84 472.6 2 695.5 2 559. 41 790. 62 619. 96 672. 23 545. 21 862. 31 738. 00 995.3 3 864.8 3 Others 213.9 0 93.76 297.6 8 126.6 9 380. 70 159.3 2 338. 44 171.8 8 481.2 7 269. 28 636.0 5 385.2 3 Table: Exports and imports of State-owned enterprises and foreign-owned enterprises in China (2006-2011, billion U.S. dollars)

5. Processing and assembling trade and China’s exports

6. Year Processing and assembling trade (billion U.S. dollars) Proportion in China’s foreign trade (%) Year Processing and assembling trade (billion U.S. dollars) Proportion in China’s foreign trade (%) 19865.6218.161999110.8856.88 19878.9922.802000137.6555.24 198814.0629.592001147.4355.41 198919.7937.662002179.9355.26 199025.4240.942003241.8555.19 199132.4345.102004327.9755.28 199239.6246.642005416.4754.66 199344.2548.232006510.3652.67 199456.9847.092007617.5650.71 199573.7049.542008675.1147.19 199684.3355.832009587.00 48.85 199799.6054.492010740.3046.92 1998104.4556.862011835.4044.00 Table: China ’ s processing and assembling trade and its proportion in China ’ s foreign trade (1986-2011)

7. In the first three quarters of 2012, private enterprises recorded a sound momentum of growth in imports and exports, growth in general trade continued to outpace that in processing trade

8. Item ExportsImports Value Change （ % ） Value Change （ % ） Total 14953.97.413470.84.8 By form Ordinary trade 7297.88.37691.93.6 Processing trade 6309.43.03520.01.0 Others1346.727.82258.916.1 By ownership SOEs 1927.5-3.93722.80.9 FIEs7511.23.16483.41.3 Others5515.219.23264.618.0 Table: China ’ s imports and exports by form and by ownership, 2012.1-9 (US$100m)

9. China’s comparative advantage and competitive advantage are strong

10. Labor advantage 200620072008 Local currency U.S. dollar Local currencyU.S. dollar Local currency U.S. dolla r China a 1497.2 191.71740.3238.42016.0295.2 Japan 299600 2518.72968002603.5293400 3233. 1 Korea, Rep. b 2594800 2790.727720002961.22757800 2189. 6 Singapore 3618.0 2364.73764.02613.93955.0 2746. 5 Table: The average monthly wage of manufacturing employees

11. Scale advantage, technology advantage and industry advantage

12. 20012002200320042005200620072008200920102011 Primary products Expo rt 26.3 4 28.5 4 34.81 40.5 5 49.0 4 52.9261.5179.9663.1181.69 400. 55 Impo rt 45.7 4 49.2 7 72.76 117.2 7 147.7 1 187.13 243.0 9 362.3 9 289.8 0 433.8 5 604. 38 Manufact ured goods Expo rt 239.7 6 297. 06 403. 42 552.7 8 712.9 2 916.0 2 1156.2 7 1352.7 4 1138.4 8 1496. 07 1798. 05 Impo rt 197.8 1 245. 90 340. 00 443. 96 512.2 4 604.3 3 712.86770.17716.12 962.3 9 1139. 08 Table: Classification of China ’ s imports and exports in goods, 2001-2011 (billion U.S. dollars)

13. 20012002200320042005200620072008200920102011 Export (billion U.S. dollars) 46.567.9110.3165.5218.2281.5347.8415.6376.9492.4548.8 Growth rate (%) 25.546.0262.4450.0531.8429.0123.5519.49-9.330.711.5 The proportion in total exports (%) 17.520.825.227.928.629.128.629.131.431.229.0 Import (billion U.S. dollars) 64.182.8119.3161.4197.7247.3287.0341.9309.8412.7462.9 Growth rate (%) 22.129.244.0 8 35.2922.4925.0916.0519.13-9.433.212.2 The proportion in total imports (%) 26.328.128.928.83031.23030.230.829.626.6 Net export (billion U.S. dollars) -17.6-14.9-9.04.120.534.260.873.767.179.785.9 Table: China ’ s foreign trade of high-tech products (2002-2011)

14. Small proportion of China’s services trade deficit

15. 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 2011 Transportati on - 0.54 - 0.49 - 0.53 - 0.48 - 0.42 - 0.41 - 0.40 - 0.34 - 0.30 - 0.24 - 0.16 - 0.13 - 0.33 - 0.30 - 0.39 Travel0.200.160.130.110.120.140.070.15 0.160.110.06 - 0.05 - 0.09 - 0.20 Communica tion services - 0.03 0.600.510.70 - 0.09 0.080.20 - 0.03 - 0.09 - 0.07 0.040.030.000.040.17 Constructio n services - 0.34 - 0.31 - 0.22 - 0.25 - 0.01 0.130.040.050.240.170.300.400.230.480.60 Insurance services - 0.71 - 0.64 - 0.81 - 0.92 - 0.85 - 0.88 - 0.87 - 0.88 - 0.87 - 0.89 - 0.84 - 0.80 - 0.75 - 0.81 - 0.74 Financial services - 0.84 - 0.72 - 0.20 -0.110.12 - 0.28 - 0.21 - 0.19 - 0.33 - 0.80 - 0.50 - 0.33 - 0.27 - 0.04 0.07 Computer & information services - 0.47 - 0.43 0.090.150.14 - 0.28 0.030.130.060.280.320.330.340.510.53 Table: TC index of China ’ s services trade (1997-2011)

16. Royalties & license fees - 0.8 2 - 0.7 4 - 0.8 3 - 0.8 8 - 0.8 9 - 0.9 2 - 0.9 4 - 0.9 0 - 0.9 3 - 0.9 4 - 0.9 3 - 0.8 9 - 0.9 3 - 0.8 8 - 0.9 1 Consulting - 0.15 - 0.19 - 0.3 0 - 0.2 9 - 0.2 6 - 0.3 4 - 0.2 9 - 0.2 0 - 0.0 8 - 0.0 4 0.0 3 0.150.16 0.2 0 0.21 Advertisin g, media - 0.01 - 0.11 0.0 0 0.0 5 0.0 4 - 0.0 3 0.0 3 0.10 0.2 2 0.170.19 0.0 7 0.18 Film, audiovisua l - 0.6 3 - 0.4 4 - 0.6 7 - 0.5 4 - 0.2 9 - 0.5 3 - 0.3 5 - 0.6 2 - 0.3 3 0.0 0 0.2 0 0.14 - 0.5 0 - 0.6 0 Other business services 0.19 0.0 7 0.0 2 0.0 7 0.12 0.2 8 0.4 0 0.31 0.2 9 0.2 7 0.19 0.0 6 0.14 0.3 5 0.2 8 Governme nt services - 0.5 8 - 0.8 5 - 0.7 6 0.2 4 0.3 0 - 0.10 - 0.12 - 0.17 - 0.0 9 0.0 9 - 0.2 0 - 0.13 0.0 6 - 0.0 5 - 0.16

18. RMB’s exchange rate is not the key for China’s trade surplus

19. The pressure of appreciating RMB

20. RMB’s appreciation can not solve the problem of trade imbalance

22. 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 2010 U.S. exports (billion U.S. dollars) 19.222.128.434.741.855.265.271.569.691.9 % change18.315.128.522.220.632.118.19.5-2.632.1 U.S. imports (billion U.S. dollars) 102. 3 125.2 152. 4 196. 7 243. 5 287. 8 321.5 337. 8 296. 4 364. 9 % change2.222.421.729.123.818.211.75.1-12.323.1 Total (billion U.S. dollars) 121.5147.3 180. 8 231. 4 285. 3 343 386. 7 409. 2 366. 0 456. 8 % change21.421.222.82823.320.212.75.8-10.624.8 U.S. balance (billion U.S. dollars) - 83.0 - 103. 1 - 124. 0 - 162. 0 - 201. 6 - 232. 5 - 256. 3 - 266. 3 - 226. 8 - 273. 1 Table: Trade between China and the U.S. (2001-2010)