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Commerce Minister: Huge trade surplus to be reduced

(China Daily)
Updated: 2007-01-16 08:35

For example, exporters previously banned from the processing trade are encouraged to switch to manufacturing for the domestic market.

Bo added, however, that the central government would continue to encourage exports from central and western China.

China's widening trade surplus has been cited as a reason to press Beijing to revalue its currency, People'sBank of ChinaGovernor Zhou Xiaochuan was quoted as saying at a meeting in Switzerland last week.

He added that China can further increase the flexibility of its exchange rate if trade surpluses continue to mount.

Cutting the structural trade surplus will take at least two years despite the government's determination, said economist Fan Gang.

He predicted that China's exports will continue to grow stronger than imports this year, which means the surplus is likely to increase but at a slower pace.

(China Daily 01/16/2007 page1)