China saw a trade deficit of US$8.4 billion in the first quarter
of this year, with the deficit in February surging to US$7.9
billion.
Pressure for the nation to keep a trade balance will intensify,
remarked Deputy Director Li Rongcan of the Ministry of Commerce's
planning and financial department. He was speaking at a press
conference on China's foreign trade development report.
Price hikes in energy and raw materials and China's export
tariff rebate cut will hurt the competitiveness of many Chinese
export commodities, while soaring imports stemming from the
nation's overheated investment, price rises of global import
commodities and the reduction of import tariffs will aggravate the
situation.
Foreign trade authorities should also take note of the downward
pressure on tariffs and non-tariff measures under China's WTO
agreements, as well as friction resulting from international trade
protectionism, said Li.
China's general tariff level will fall to 10.4 percent, lower
than most developing countries, and non-tariff measures are
decreasing. This places tertiary industries, agriculture and
manufacturing, including the auto industry, in a less favorable
position to compete with global rivals.
China is forecast to record total imports and exports worth
US$1.0 trillion in 2004, a rise of 17 percent from a year ago.
(China Daily April 30, 2004)