Trade imbalance needs more work
China and its trade partners need to do more to cut the country's growing trade surplus, say experts.
In 2006, the country's trade surplus jumped over 74 percent year-on-year to $177.5 billion. It also saw widening trade gaps with many major partners, such as the United States and the European Union. This has forced the Ministry of Commerce to set "cutting the trade surplus" as one of its priorities this year.
Despite the ministry and other government agencies' various measures encourage and facilitate imports, there's more China can do, said Li Zhongzhou, a senior World Trade Organization (WTO) expert with the EU-China Trade Project.
Procurement treaty
If China joins the government procurement treaty, it will help to enlarge China's imports, he said. "Chinese businesses will also benefit from the move as it opens for them the door to other markets."
Li said China could also ease the controls on imports of telecom products because "that will not hurt the domestic industry". Further strengthening of the protection of intellectual property rights will help increase international sellers' confidence in exporting to China, he added.
On the other hand, the United States and the European Union are also expected to eliminate barriers to technology and equipment exports to China. The EU now tops China's technology import list and the US lags far behind although it owns some of the technologies China needs.
US must ease controls
China's imports from the US will rise if the US government eases the restrictions on exports, said Mei Xinyu, of the commerce ministry's research institute.
In the latest talks between China and the US on this issue, Chinese officials recommended the US remove one-third to half of the restrictions, which are totally "out of date".
The Chinese government spares no efforts to balance its imports and exports: it does not only encourage imports from certain economies but controls exports of resource-intensive or polluting products.
The government has decided to grant tax rebates on imports of key equipment and raw materials, a move targeted at both boosting imports and developing domestic development and research.
Chinese Vice-Minister of Commerce Gao Hucheng said these measures would begin to yield results in the coming months.
Chinese industries are also prepared to buy more from trade partners. The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters will "make every effort" to increase imports from the US in its sector, according to its chairman Chen Haoran, although China has a trade deficit in this area.
US first
"We will consider buying 'Made in US' products first when they are priced at the same level with other countries and regions," he said.
Industry insiders said China would consider the US first when importing farm products, including corn and cotton. China is likely to ink a $17 billion import deal with the US in two months' time, covering soy, cotton and machineries. The figure is higher than the record deal signed last year.
(China Daily 04/14/2007 page1)
