THRIVING IMPORTS
China seeks further integration in the world economy with a push on global imports
WThe author is dean of the Institute of International Economy at the University of International Business and Economics hile establishing itself as a major trading nation, China is also trying to expand its import market. Holding an import expo is one of the strategic measures to achieve this goal. It is hoped that this growth in imports will contribute to establishing an open economy and stimulate global growth.
A significant expo
Since its accession to the World Trade Organization (WTO) in 2001, China has been working to live up to its commitments, lowering tariffs, reducing non-tariff measures and increasing trade liberalization and facilitation. While exports rapidly increase, the growth of imports has also seen marked expansion. China has become a major trading partner of more than 120 countries and regions. From 2001 to 2017, China’s goods imports grew at an average of 13.5 percent every year, which was 6.9 percentage points higher than, or nearly double, the world average, making the country the second largest importer of goods in the world. During the same period, China’s imports of services rose from $39.3 billion to $467.6 billion, an average annual growth of 16.7 percent, accounting for nearly 10 percent of the world’s total imports of services. Since 2013 China has been the second largest importer of services in the world.
In recent years China has been expanding its import market in a bid to share opportunities with other countries. The China International Import Expo (CIIE) is a major step in the expansion plans.
The first CIIE was held at the National Exhibition and Convention Center in Shanghai on November 5-10. Before the expo, China organized seven preliminary matchmaking events. It also set up an online exhibition hall and arranged four comprehensive service zones in order to provide top exhibition services. The expo provided free booths for the least developed countries in Africa. Many supporting events such as symposiums and product launches were held during the expo.
As the first national-level expo in the world focusing on imports, the 2018 CIIE was evidence of the latest round of high-level opening up in China. It is a significant move for the Chinese Government to hold the CIIE with a view of firmly supporting trade liberalization and economic globalization.
Besides the CIIE, China has adopted other measures to stimulate imports:
After significantly lowering import tariffs for investment and consumer goods as of November 1, China’s tariff level was set at 7.5 percent, down from 9.8 percent in 2017.
China is enhancing cooperation with other countries involved in the Belt and Road Initiative. It sees the countries as a vital import market as it works to improve interconnectivity and accelerates the building of a network of free trade.
Within the WTO framework, China provides preferential market access to the least developed countries, offering zero-tariff treatment to 97 percent of the tariff items sold to China.
China is actively looking to expand imports through cross-border e-commerce platforms.
China is working to boost balanced foreign trade development by establishing national demonstration zones for innovation in import promotion.
Taking the initiative
Hosting the CIIE conforms to the requirement of China’s economic and social development and fulfills the country’s commitment to advancing global free trade and boosting world economic growth.
First, expanding imports satisfies the