The government has pledged to reduce China's unprecedented trade
imbalance by allowing more imports into the country this year,
though the problem will not be resolved in the short term.
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The trade surplus hit US$156.5 billion in the first 11 months of
last year with the 2006 total set to reach US$170 billion.
The size of the trade imbalance has aroused great concern both
at home and abroad. A Ministry of Commerce spokesperson said this
weekend that, to help resolve this, the government would increase
imports to address those concerns.
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, also known as the Canton
Fair and the country's largest trade fair, will include import
exhibitions for the first time at its April showing. The event
takes place biannually.
These moves represent a continuation of the government's efforts
to address the trade imbalance.
In 2006, the central government twice scrapped or cancelled tax
rebates on exports of some energy-consuming and polluting products
in an attempt to curb exports and correct the trade imbalance.
This issue was rarely off the agenda last year as major import
deals with countries suffering from major trade deficits with
China, such as the US, typically topped the agendas of senior trade
officials' visits abroad.
However, due to China's central role in global manufacturing,
exports remained strong last year, increasing 27.5 percent
year-on-year to US$875 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 would not narrow
this year, though its growth rate may slow.
Furthermore, China's trade surplus with some countries,
including the US, will not see a marked downturn, said Fan Gang, an
economist.
"China's exports will still be strong this year" despite
governmental 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 go as far as
increasing to US$200 billion this year.
(China Daily January 8, 2007)