The government has pledged to reduce China's unprecedented trade
imbalance by allowing more imports into the country this year,
though the problem is not expected to go away any time soon.
The trade surplus hit $156.5 billion in the first 11 months of
last year and is expected to reach $170 billion for the whole
year.
The size of the trade imbalance has aroused great concern both
at home and abroad.
A spokesperson of the Ministry of Commerce said this weekend
that the government would increase imports to address those
concerns.
Strategic areas
He said the government would focus on imports in strategic areas
by: encouraging imports of key equipment, technology and resources
by adjusting tariff rates; strengthening financial support for
imports with targeted loans; opening domestic markets for regional
economic cooperation; and encouraging imports from the least
developed countries in Africa by scrapping tariffs on goods from
those countries.
"We also hope to increase imports through some major trade
fairs," he added.
The Chinese Export Commodities Fair, which is also known as the
Canton Fair and is the country's largest trade fair, will include
exhibitions of imports for the first time starting in April. The
event takes place twice a year.
These moves represent a continuation of the government's efforts
to address the trade imbalance.
The central government twice scrapped or cut tax rebates on
exports of some energy-consuming and polluting products last year
in an attempt to curb exports.
Big import deals with countries that have major trade deficits
with China, such as the United States, typically topped the agendas
of senior trade officials' visits last year.
Unlikely to shrink
However, because China plays such a central role in global
manufacturing, exports remained strong last year, increasing 27.5
percent year-on-year to $875.0 billion in the first 11 months of
last year. During the same period, imports grew some 20 percent
year-on-year.
Experts have said the country's trade surplus is not expected to
narrow this year, though its growth should slow.
China's trade surplus with some countries, including the United
States, will not totally disappear this year, said Fan Gang, an
economist.
"China's exports will still be strong this year" despite the
government's efforts, he said.
He added that the country's structural trade surplus is likely
to continue into next year.
Gao Shanwen, an economist at Everbright Securities, echoed this
sentiment, saying that China's trade surplus could even increase to
$200 billion this year.
(China Daily January 8, 2007)