China aims to im­prove trade bal­ance in 2011

The Pak Banker - - International -

BEI­JING: China will try to im­port more in 2011 while keep­ing ex­ports steady, Com­merce Min­is­ter Chen Dem­ing said on Wed­nes­day, in a sign that the world's sec­ond­largest econ­omy is keen to pull more weight as a con­sumer.

In a state­ment on the min­istry's web­site www.mof­com.gov.cn, Chen said China wants to bet­ter bal­ance its trade ac­count, and will step up pur­chases of high-tech goods and com­modi­ties such as grains and cot­ton next year.

"We will im­prove our poli­cies and fur­ther sim­plify reg­u­la­tions to sup­port ex­pan­sions in im­ports and pro­mote trade bal­ance," Chen said.

Bei­jing, un­der for­eign pres­sure to con­trib­ute to global eco­nomic re­bal­anc­ing, has taken steps to spur do­mes­tic con­sump­tion to help re­duce the econ­omy's re­liance on ex­ports. Keep­ing up the pres­sure on the euro zone to re­solve its debt cri­sis, Chen said Europe's debt prob­lems posed a se­ri­ous risk to the re­cov­ery in the world econ­omy, and that has helped to lead to "an ex­tremely com­pli­cated" 2011 trade out­look for China.

Chen also warned of risks in­curred by the sov­er­eign debt cri­sis in the Euro­pean coun­tries and noted that they may un­der­mine the foun­da­tion of world eco­nomic re­cov­ery.

"Sov­er­eign debt is­sue and risks in the fi­nan­cial sys­tem are still far from be­ing solved, the global eco­nomic growth may slow down," he added.

On Tues­day, China urged Euro­pean of­fi­cials to take ur­gent ac­tion to re­solve sim­mer­ing debt prob­lems at an­nual trade talks with the Euro­pean Union, its biggest trad­ing part­ner.

Chen said China would also study how to di­ver­sify the use of its $2.65 tril­lion for­eign ex­change re­serves, the world's largest. China will use part of its for­eign ex­change re­serves to sup­port over­seas ven­tures by do­mes­tic firms. Chen also urged de­vel­oped coun­tries to re­move re­stric­tions on ex­ports of high-tech prod­ucts to China, which is seen by Bei­jing as one of the ma­jor rea­sons be­hind China's swelling trade sur­plus. -Reuters

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