Deficits possible as trade surplus set to narrow
Source: Xinhua |
March 8, 2011, Tuesday
|
Print Edition
Print Edition
China's trade surplus will narrow this year with the growth of imports likely to soon outpace that of exports, Commerce Minister Chen Deming said yesterday.
Growth in foreign trade will slow, Chen told reporters during the annual session of the National People's Congress, the country's top legislature, and he could not rule out the possibility that China would register trade deficits in some months.
Imports will expand rapidly in 2011 as the country steps up efforts to restructure the economy, push forward its free trade agreements and improve import regulations, he said.
Chen expects the country to see a mild increase in exports this year due to complicated domestic and international situations, including exchange rate fluctuations, increasing protectionism and higher costs of raw materials and labor, as well as a shortage of domestic labor.
"Higher standards of energy efficiency and environmental protection will further push up costs of production," he said.
Chen said the aim of this year's foreign trade policy would be to "stabilize exports and boost imports while having a lower trade surplus."
He noted that the trade surplus in proportion to GDP would continue to drop this year but said it was difficult to make a specific forecast. The proportion for last year was 3.1 percent.
China's trade surplus fell to US$183 billion in 2010, from a record US$296 billion in 2008, ministry statistics showed.
Despite increasing uncertainties and difficulties, the outlook for China's foreign trade remained good, the minister said.
Chen said China would not "substantially" increase imports of farm produce this year and he also hoped that some Western countries would remove restrictions on exports to China.
China is expected to surpass Japan to become the world's largest consumer of high-end goods by 2015, Chen said.
This shift was attributed to China's large population, rising incomes and inadequate supplies of home-made high-end brands, he said.
Consumption of high-end products in China rose 23 percent in 2010, he said, adding that the number of Chinese people shopping for luxury goods overseas had increased 30 percent.
The government will develop the country's own brands and work out measures to let foreign brands sell their China-made products directly in China's market to benefit Chinese consumers, he said.
China will also improve its sales network and strengthen regulations in retail markets, he said.
The minister also said that China was willing to cooperate with Japan in developing alternatives to rare earths.
"At the current pace of rare earths use, it will not be long before the world's reserves are depleted. We hope to work with Japan and other countries to find alternative materials or recycling methods," Chen said.
China has tightened the rules on rare earths, key raw materials in high-tech electrical products but which cause heavy pollution during processing.
As the world's largest producer and exporter of rare earths, China provides more than 90 percent of global demand, though its reserves account for only a third of the world's total.
"China faces huge environmental pressures. We hope other countries will understand our measures to reduce the quota for both domestic and overseas consumers," Chen said.
China announced its first batch of 2011 rare earths export quotas at 14,446 tons at the end of 2010. Full-year quotas are under discussion.
China exported 35,000 tons of rare earths from January to November last year, up 14.5 percent from a year earlier. Exports to Japan, the European Union and the United States accounted for 86 percent of the total, the Ministry of Commerce said.
Growth in foreign trade will slow, Chen told reporters during the annual session of the National People's Congress, the country's top legislature, and he could not rule out the possibility that China would register trade deficits in some months.
Imports will expand rapidly in 2011 as the country steps up efforts to restructure the economy, push forward its free trade agreements and improve import regulations, he said.
Chen expects the country to see a mild increase in exports this year due to complicated domestic and international situations, including exchange rate fluctuations, increasing protectionism and higher costs of raw materials and labor, as well as a shortage of domestic labor.
"Higher standards of energy efficiency and environmental protection will further push up costs of production," he said.
Chen said the aim of this year's foreign trade policy would be to "stabilize exports and boost imports while having a lower trade surplus."
He noted that the trade surplus in proportion to GDP would continue to drop this year but said it was difficult to make a specific forecast. The proportion for last year was 3.1 percent.
China's trade surplus fell to US$183 billion in 2010, from a record US$296 billion in 2008, ministry statistics showed.
Despite increasing uncertainties and difficulties, the outlook for China's foreign trade remained good, the minister said.
Chen said China would not "substantially" increase imports of farm produce this year and he also hoped that some Western countries would remove restrictions on exports to China.
China is expected to surpass Japan to become the world's largest consumer of high-end goods by 2015, Chen said.
This shift was attributed to China's large population, rising incomes and inadequate supplies of home-made high-end brands, he said.
Consumption of high-end products in China rose 23 percent in 2010, he said, adding that the number of Chinese people shopping for luxury goods overseas had increased 30 percent.
The government will develop the country's own brands and work out measures to let foreign brands sell their China-made products directly in China's market to benefit Chinese consumers, he said.
China will also improve its sales network and strengthen regulations in retail markets, he said.
The minister also said that China was willing to cooperate with Japan in developing alternatives to rare earths.
"At the current pace of rare earths use, it will not be long before the world's reserves are depleted. We hope to work with Japan and other countries to find alternative materials or recycling methods," Chen said.
China has tightened the rules on rare earths, key raw materials in high-tech electrical products but which cause heavy pollution during processing.
As the world's largest producer and exporter of rare earths, China provides more than 90 percent of global demand, though its reserves account for only a third of the world's total.
"China faces huge environmental pressures. We hope other countries will understand our measures to reduce the quota for both domestic and overseas consumers," Chen said.
China announced its first batch of 2011 rare earths export quotas at 14,446 tons at the end of 2010. Full-year quotas are under discussion.
China exported 35,000 tons of rare earths from January to November last year, up 14.5 percent from a year earlier. Exports to Japan, the European Union and the United States accounted for 86 percent of the total, the Ministry of Commerce said.
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