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)
