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China mulls policies to spur imports

By Yu Hongyan (chinadaily.com.cn)
Updated: 2011-01-07 17:10
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China is set to launch a basket of policies to promote the country’s imports in the first half of 2011 in a bid to reduce the country’s trade surplus, the 21st Business Herald reported Friday.

These policies will focus on promoting imports of advanced equipment and technologies.

Government agencies in charge of foreign trade are discussing how to adjust the Catalogue for Technologies and Products Encouraged to Import, a document jointly issued by several ministries in 2009, the newspaper reported.

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Winding down import tariffs, subsidizing companies that import high-end technologies or equipment, and simplifying import processes are the main goals of these policy shifts.

Looser forex control and lower import tariffs would be the most important two parts in these policies, according to Zhou Shijian, former vice-president of China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters.

But it would be unrealistic to introduce an all-round tariff cut for advanced techs or equipment imports, the paper reported , as average import tariff in China is a mere 9.8 percent.

"Room for further tariff cuts is limited," a trade official was quoted by the paper.

China’s trade surplus is expected to reach $190 billion in 2010,which high above the government’s original target, according to Chen Deming, minister of Commerce. And the country is to balance trade and convert trade growth patterns this year.