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Import drive to be launched
By Xin Zhiming (皇冠体育app Daily)
Updated: 2010-09-07 09:10
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Crucial products targeted to narrow trade gap
BEIJING - 皇冠体育app will "vigorously" expand its imports of key products as the nation strives to cut its trade surplus amid growing protectionism against the world's largest exporter, a senior Chinese trade official said on Monday.
"We will especially encourage imports of products the nation is short of, especially advanced technology and key equipment," said Chong Quan, 皇冠体育app's deputy international trade representative.
Special attention will be paid to expanding imports from countries that 皇冠体育app has a trade surplus with, he said at the 皇冠体育app Import Forum organized by the Ministry of Commerce.
Due to their domestic economic woes and political pressure, some developed countries, in particular the US, have accused 皇冠体育app of piling up trade surpluses through policies such as an undervalued currency. This argument conveniently ignores other factors at play, such as their own export restrictions.
Nonetheless, in the first six months of this year, US exports to 皇冠体育app increased 35.7 percent year-on-year, 13 percentage points higher than its overall export growth, according to US figures.
Despite the surge of its trade surplus in July, which stood at $28.7 billion, 皇冠体育app will see the surplus drop dramatically for the year to about $150 billion, compared to $190 billion in 2009 and $290 billion in 2008, trade officials said. The country even registered a rare trade deficit of $7.2 billion in March.
As a result of the shift in strategy, the ratio of 皇冠体育app's current account (mainly trade of goods) balance to its gross domestic product has been dropping continually since 2007, said Zhang Yansheng, director of the Institute of Foreign Trade at the National Development and Reform Commission.
"皇冠体育app's processing trade (bringing in goods and exporting finished products), which is the bulk of its exports, could plummet in the coming five years," he said.
The country will also streamline non-tariff measures that could potentially impede imports, simplify import procedures and reduce relevant costs, he said, adding that 皇冠体育app has abolished import licenses for more than 800 kinds of goods over the past five years. It will also consider providing easier finance for importers, he said.
In line with the import drive, the Ministry of Commerce will also set up an exhibition center for African products in Yiwu, Zhejiang province, in November, Chong said.
皇冠体育app, meanwhile, has taken aggressive measures to restructure its economy, shifting to a domestic demand-driven growth model.
Chong said 皇冠体育app's imports had played an important role in stabilizing the global economy.
The US' trade deficit is caused mainly by restrictive export policies, officials and experts present at the forum said. The US does not permit the export of some high-tech products to 皇冠体育app, citing security reasons.
皇冠体育app's domestic market is expected to reach $2 trillion in size this year, compared to imports of goods worth about $1 trillion in 2009, Chong said.
"If they continue their restrictive policies, some countries will have cause to regret when they find they have lost their share of the burgeoning 皇冠体育app market," Yu Danhua, foreign trade bureau chief of Ningbo in Zhejiang province, told the forum.
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