Page 10: of Maritime Reporter Magazine (April 2014)

10 Maritime Reporter & Engineering News ? APRIL 2014 China?s aim of 7.5% GDP growth for 2014 is positive news for the shipping market ? in particular, dry bulk, the Baltic and International Maritime Council (BIMCO) said in a published report.Despite being a little down on the 2013 GDP growth of 7.7%, BIMCO said the growth target of 7.5% set by China?s Premier Li Keqiang at his Þ rst appear- ance at China?s annual parliamentary session bodes well for shipping, trade and commodity demand in 2014.In 2013, Chinese seaborne imports surpassed the 2 billion metric tons mark, according to CRSL. To put that into per- spective, it means that China has now more than doubled its imports from 1 billion metric tons in 2008 to 2.1 billion metric tons in just Þ ve years. Imports of dry bulk commodities dom-inate the trade by accounting for 74% in 2013. Led by iron ore, which accounts for 39%, the scope of imports become larger and wider every day. ?The importance of China to the ship-ping market is second to none,? said Peter Sand, Chief Shipping Analyst, BIMCO. ?This goes for all major ship-ping segments. In spite of leaving the double-digit growth rates behind us in the previous decade, the sheer size of the world?s second-largest economy now gives so much impetus to our industry that we have become addicted to China.?A stable and improved Chinese econo- my, even at a slower GDP growth level, is thus vital to a sound shipping mar- ket going forward. The announcement of the target, delivered during the 12th National People?s Congress on March 5, comes after a couple of month where the Chinese economy has shown some weakness in Purchasing Managers Index (PMI) developments.Recent development in Chinese PMI showed an eight-month low in the of-Þ cial PMI, coming in at 50.2 in Febru- ary. The HSBC China Manufacturing PMI posted at 48.5 in the same month supplements this slowing tendency. Both indexes agree on tougher conditions for smaller and medium-sized enterprises, whereas larger enterprises seem to fend off the headwind rather better. The average of China?s manufacturing PMI for 2013 was 50.2 for the HSBC/Markit indicator, which is more focused on smaller and medium-sized enterpris-es, whereas the ofÞ cial PMI indicator, which is more focused on the larger en- terprises, averaged at 50.8.Selected key statements from the China Premier BIMCO gathered statements, all rel-evant to the shipping industry and the macroeconomic foundation, taken from the Premiers speech (source: Bloom-berg): ? Future Economic Development: ?We must keep economic develop- ment as the central task and maintain a proper economic growth rate. On the basis of careful comparison and repeat- edly weighing various factors as well as considering what is needed and what is possible, we set a growth rate target of around 7.5%.? ? Recalibrating the Economic Growth Model: ?Boosting domestic demand is both a major force driving economic growth and an important structural adjustment. We need to fully leverage the basic role of consumption and the key role of in- vestment, foster new regional economic mainstay belts, stimulate both supply and demand, and establish a permanent mechanism for increasing domestic de- mand.?? On Foreign Trade: ?We will make it a strategic priority to upgrade exports and promote balanced growth of foreign trade. Total imports and exports are projected to grow at around 7.5% this year. We will keep ex- port policies stable and improve them, accelerate reform to facilitate customs clearance, and extend trials of cross- border e-commerce.? NEWS China on the Rise ... Again7474Imports of dry bulk com-modities dominate the trade by accounting for 74% in 2013. 7.57.5China?s aim of 7.5% GDP growth for 2014 2B2BIn 2013, Chinese seaborne imports surpassed 2 billion metric tons, doubled from 1 billion metric tons in 2008China Growth Plans are Positive for Global Shipping MR #4 (10-17).indd 10MR #4 (10-17).indd 104/4/2014 9:48:06 AM4/4/2014 9:48:06 AM