China has mapped out a plan to boost its imports to reduce its
huge trade surplus, the Ministry of Commerce (MOFCOM) said
yesterday.
The new measures include increasing imports of large machinery
components, advanced technology and resource-intensive goods,
signaling a strategic transformation for China to embrace a larger
influx of foreign goods and capital.
"We will continue to give duty-free status to imports from the
least developed countries and expand imports from them," a MOFCOM
official told Xinhua News Agency.
The announcements follow the signing of four business contracts
between China and the US on Wednesday, involving a US$550 million
aircraft engine deal with GE Aviation and the US retailer Home
Depot's acquisition of Chinese home improvement store Home Way.
"China has made the right choice to expand its imports as it
will help the country satisfy the demands of its rapidly developing
economy," said Tang Min, chief economist with the Asian Development
Bank.
China's exports have rocketed from US$245 billion to the
estimated US$800 billion in 2006 since its accession to the World
Trade Organization in 2001.
Meanwhile, China's trade surplus hit a new high of US$157
billion in the first 11 months of the year.
The growing gap has led to increased trade friction and more
pressure from the US for an appreciation of the Chinese yuan.
Zhang Junsheng, a professor with the WTO Research Institute at
the Beijing-based University of International Business and
Economics, said an increase in imports would help redress the trade
imbalance and optimize the structure of the mounting foreign
reserve.
(China Daily December 16, 2006)