VZCZCXRO8788
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0686 3510855
ZNR UUUUU ZZH
R 170855Z DEC 09
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 1185
INFO RUEHOO/CHINA POSTS COLLECTIVE 0384
RUEATRS/DEPT OF TREASURY WASHINGTON DC 0210
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC 0120
RUEAIIA/CIA WASHDC 0357
RUEKJCS/DIA WASHDC 0353

UNCLAS GUANGZHOU 000686 
 
SIPDIS 
 
Dept for EAP/CM, EEB/TPP and INR/EAP 
State pass USTR 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL EINV CH
SUBJECT: GUANGDONG PROVINCE TRADE NUMBERS SHOW SOME IMPROVEMENT 
 
REF: A) GUANGZHOU 627, B) GUANGHOU 290 
 
¶1. (U) According to Guangdong Customs, November bilateral trade 
numbers snapped a 12-month string of declines, with total trade 
volume between the United States and Guangdong Province growing 0.5% 
to USD 7.27 billion, year-on-year.  Of that number, U.S. imports 
accounted for USD 1.14 billion, an increase of 26.1%, while 
Guangdong exports decreased 3.2% to USD 6.13 billion, year-on-year. 
 
¶2. (U) Year-to-date, total U.S.-GD trade volume reached 
USD 72.97 billion, a year-on-year decrease of 13.1%.  U.S.-GD trade 
shrank less than EU-GD and Japan-GD trade during the same period, 
which declined 17% and 15.7%, respectively, and U.S.-GD trade 
accounted for 13.5% of the total import-export volume for the 
province. 
 
¶3. (U) Guangdong exports to the United States totaled USD 62.25 
billion in the first 11 months of 2009, representing a year-on-year 
decrease of 13.1%, and American imports were USD 10.73 billion 
during the same period, a decrease of 13.4%.  The Guangdong-based 
processing trade, frequently referred to as production of 
labor-intensive products, accounted for 66.5% of the total U.S.-GD 
trade volume, a decline of 16.5%.  This decline slowed in November, 
which may show that demand for Guangdong's low-cost consumer 
products is approaching a bottom.  Textile exports to the U.S. grew 
by 16% during the same period.  According to Guangdong Customs, the 
province imported USD 3.35 billion in hi-tech products from the 
United States, approximately 31.2% of total U.S. imports and a 
decrease of 17.5% year-on-year. 
 
¶4. (U) According to local media reports on the Guangdong Customs 
November trade figures, improved trade numbers show that U.S. demand 
is gradually returning and will form the basis for recovery of 
U.S.-China trade.  However, local media caution that China exports 
in general and Guangdong exports in particular face trade 
protectionism and high unemployment rates in America, and the 
appreciation of China's currency as major obstacles to full 
"recovery." 
 
GOLDBECK