Cutting trade imbalance

That the issue of the trade surplus became a focus of both China's commerce minister and central bank governor at yesterday's press conference shows the country's resolve to tackle the problem. But tangible results will not come as a result of China's unilateral efforts.

The two ministers are quite frank regarding the issue of China's huge trade surplus, especially with the United States, which is pressing China hard to revalue its yuan to reduce its trade advantage.

China is more than aware of its expanding trade surplus and is seeking to balance international payments by making policy adjustments, such as the export tax rebate and the steady reform of its exchange rate regime.