China has noticed the negative impacts brought by
the huge foreign exchange reserves and is taking steps to relieve the pressure,
said spokesman of the National Bureau of Statistics on Thursday.
Exports of products that consume much energy and produce heavy pollution will
be restricted in China, while more manufacturing equipments and high-tech
products will be imported in the future, said spokesman Zheng Jingping for the
National Bureau of Statistics at a press conference.
Zheng said these measures will be taken to seek a balance in China's foreign
trade. China's continued trade surplus is regarded one reason for the surging
foreign exchange reserves.
In addition, State Administration of Foreign Exchange also started to free up
the country's foreign exchange regime recently with a shift from stockpiling
foreign exchange reserves in State coffers to letting businesses and residents
hold more foreign currency, said Zheng.
Some qualified commercial banks are also encouraged to invest in overseas
financial market, Zheng added.
China's foreign exchange reserves, already replacing Japan as the world's
biggest by February, continued its soaring trend last month, growing 32.8
percent year on year to 875.1 billion U.S. dollars.
The huge foreign exchange reserves, fuelled by China's trade surplus and
surging direct foreign investment, indeed influenced China's economic growth,
and limited the independence of the country's currency policy, Zheng
Zheng said it's normal for China to have trade deficit or surplus at a
special stage, though in the long run the trade should be balanced.
With more and more multinationals opening factories in China, the share of
processing trade has accounted for half of China's total trade. "So there must
be trade surplus in the processing trade," said Zheng.
China recorded a trade surplus of 101.9 billion dollars last year, and the
surplus in processing trade hit 142.5 billion dollars, about 1.4 times that of
the whole trade.
"The trade surplus in China may last for a period as China's advantage of low
production cost still exists, " said Zheng, adding that the U.S. deficit problem
cannot be simply resorted to a yuan revaluation.
Zheng forecasts maybe 15 or 20 years later when China enters middle stage of
aging society, with an increased production cost and lower saving rate, the
trade surplus may then be reduced.