BIZCHINA / Review & Analysis |
Concerted move to reduce trade surplusBy Jiang Wei (China Daily)Updated: 2007-01-26 10:08 But an increase in technology imports from the US is dependent on whether the US government removes or eases its export control policies toward end-users. Meanwhile, Zhao predicted China would import more agricultural products and crops in the long run because Chinese farmers are bearing increasing costs. "Imports from the US might be prioritized in a bid to reduce the surplus between the two economies," she said. According to the spokesperson of the commerce ministry, the country will encourage imports of key equipment, advanced technology and resources by adjusting tariff rates. But he did not say whether China is about to lower import tariff rates. China is planning to strengthen financial support for imports through the granting of import loans, the spokesperson said. The Export-Import Bank of China had approved import loans of more than 18 billion yuan from January to December last year. According to a report by the commerce ministry's research institution, the rise of the renminbi will also boost imports in a long term. China high trade surplus is because of its position as a vital cog in the international manufacturing chain and its processing trade, said Yu Yongding, an economist. The processing trade contributed a surplus of about $140 billion in 2005,
however the general trade deficit for the year was $38 billion.
(For more biz stories, please visit Industry Updates) |
|