China to ease tariffs, raise financing for imports
BEIJING: China will lower tariffs and step up bank financing to support more imports as the country’s massive trade surplus has a negative impact on its citizens, said Commerce Ministry officials yesterday.
China runs a vast trade surplus and has been accused by other countries, including the United States, of protecting domestic firms through unfair trade practices, including high import tariffs.
US President Donald Trump is set to visit China next week, with the trade relationship expected to be a major topic of discussion.
“A trade surplus that is too large has a negative impact on Chinese people’s enjoyment of national wealth. Only by reducing the trade surplus can Chinese people feel a greater sense of gratification,” said Commerce Ministry Vice-Minister Fu Ziying.
China would lower import tariffs on consumer products, encourage banks to expand import financing, and increase imports of advanced technological equip- ment and key components, said another vice-minister, Wang Bingnan.
Details were not provided on what kind of products would be effected.
Trump on Wednesday called the US trade deficit with China “embarrassing” and “horrible”.
On China’s trade with countries involved in its “Belt and Road” initiative, the ministry said it rose 15 per cent in the first nine months of the year from a year e a rl i e r t o U S $ 78 5.9 bi l l i o n (RM3.3 billion), reflecting the effectiveness of the ambitious trade initiative. Reuters