Trade experts expect China to allow in more imports from the
United States to address the growing trade imbalance between the
two countries.
Experts said they expected technology imports to receive
particular attention.
The trade volume between China and the United States hit
US$262.7 billion last year. However, far from cheering the
record-setting figure, trade officials from both sides have
expressed concern over the size of the yawning gap.
The United States topped both the European Union and Hong Kong
last year to become the source of China's largest trade surplus.
There is some disagreement about the size of the gap between the
two countries. Chinese customs officials said it amounted to
US$144.27 billion last year, while US customs said US$230
billion.
To reduce the size of the gap, Chinese government officials have
been calling for more imports, particularly from major surplus
sources like the United States.
The commerce ministry hinted earlier this year that China may
lower import tariffs or remove some import restrictions to support
imports.
According to the ministry's spokesperson, China will focus on
imports of key equipment, advanced technology and resources.
Technology and equipment imports from the United States are
expected to account for most of the increase.
Mei Xinyu, a researcher at the commerce ministry's research
institute, said China needed machinery and electronic equipment
from the US.
He added that it was up to the US government to ease
restrictions on exports of such goods to China.
Although US companies make technology and equipment that China
needs, US technology exports to China have lagged behind those from
the European Union in the past couple of years because of
restrictions on over 2,000 categories of goods that can be shipped
here.
In the most recent talks between China and the US on this issue,
Chinese officials recommended that the US drop one third to a half
of its restrictions, which they said were totally "out of
date".
Zhao Yumin, another expert at the commerce ministry's research
institute, said China would eventually need to import more
agricultural products from the US because Chinese farmers face
increasing production costs.
Imports in other sectors are expected to increase, as well. The
China chamber of commerce of metal, minerals and chemical importers
and exporters will "make every effort" to increase imports from the
United States, Chairman Chen Haoran said.
He added that China already runs a trade deficit in this
area.
"We will consider buying made-in-the-US products first if they
are priced at the same level as goods from other countries," he
said.
The trade gap between China and the United States has resulted
not only in a growing number of trade disputes, but also calls for
China to revaluate the renminbi and threats of retaliatory tariffs
on imports from China.
The US has urged China to increase domestic demand for imports,
though Mei said China's trade surplus with the US is the result of
high spending and low saving in the US.
He also warned that policies aimed at restricting Chinese
exports would have little impact on the growth of the trade surplus
in the short term.
"The short-term results of such policies sometimes conflict with
the medium- and long-term expectations," he said.
For example, the tax rebate reduction announced last September
pushed China's monthly trade surplus to a record high in October
and November as exporters tried to take advantage of the better
rates.
(China Daily February 13, 2007)