Nation ready to boost imports, official says

Commerce Ministry talks of plans for China to 'actively facilitate trade'

China will keep trying to boost imports as it seeks to achieve a trade balance, a senior trade official said on May 14.

The April trade figures "suggest our imports and exports are stabilizing," says Assistant Minister of Commerce Tong Daochi at the China Import Expo in Kunshan, Jiangsu province.

Customs data released last week exceeded market expectations with a slight increase following a gloomy first quarter.

Exports grew 0.9 percent year-on-year last month in dollar terms, while imports rose 0.8 percent. In March, exports fell 6.6 percent while imports contracted 11.3 percent.

Tong says China faces challenges as global conditions remain uncertain and capital is flowing into developed countries. Those trends are increasing pressure on emerging economies, which are facing weaker currencies and trade deficits.

In response to this situation, Tong says, "China will actively facilitate free trade."

Holding the import exhibition "reflects the government's determination to bring balance to foreign trade and further reduce our trade surplus, "he says.

China's trade surplus was 215.4 billion yuan ($34.3 billion) in the first four months, down 42.9 percent from a year earlier.

Unlike most other trade events, which showcase Chinese products, the event in Kunshan featured many products made by companies from Western countries, such as water-purifying equipment from Germany.

Tong says that China is willing to be more involved in multilateral mechanisms. He also urges developed countries to further open their markets and said that China will change its system accordingly.

"For example, our investment agreement negotiations with the United States and European Union forced us to introduce the 'negative list' system in the Shanghai free trade zone to promote foreign investment, "he says, adding that there are another 18 such zones in the pipeline.

Also speaking at the event was Harold McGraw III of the Paris-based International Chamber of Commerce. McGraw says that many global mechanisms, such as the United States-led Trans-Pacific Partnership, will be "less successful" without China.

"Emerging economies should have a bigger say in global economic governance," says Jiang Zengwei, chairman of the China Council for the Promotion of International Trade.

Jiang says the current rules of global economic governance favor developed countries, but the need for reform amid a changing global economic situation can't be neglected.

"Reform of the World Trade Organization, World Bank and International Monetary Fund are all examples of such advancement," he says.

(China Daily Africa Weekly 05/16/2014 page20)