Commerce Ministry talks of plans for China to 'actively facilitate trade'

China will keep trying to boost imports as it seeks to achieve a trade balance, a senior trade official said on Wednesday.

The April trade figures "suggest our imports and exports are stabilizing, "said Assistant Minister of Commerce Tong Daochi at the China Import Expo in Kunshan, Jiangsu province.

Customs data released last week exceeded market expectations with a slight increase following a gloomy first quarter.

Exports grew 0.9 percent year-on-year last month in dollar terms, while imports rose 0.8 percent. In March, exports fell 6.6 percent while imports contracted 11.3 percent.

Tong said China faces challenges as global conditions remain uncertain and capital is flowing into developed countries. Those trends are increasing pressure on emerging economies, which are facing weaker currencies and trade deficits.

In response to this situation, Tong said, "China will actively facilitate free trade."

Holding the import exhibition "reflects the government's determination to bring balance to foreign trade and further reduce our trade surplus, "he added.

China's trade surplus was 215.4 billion yuan ($34.3 billion) in the first four months, down 42.9 percent from a year earlier.

Unlike most other trade events, which showcase Chinese products, the event in Kunshan featured many products made by companies from Western countries, such as water-purifying equipment from Germany.

Tong said that China is willing to be more involved in multilateral mechanisms. He also urged developed countries to further open their markets and said that China will change its system accordingly.

"For example, our investment agreement negotiations with the United States and European Union forced us to introduce the 'negative list' system in the Shanghai free trade zone to promote foreign investment, "he said, adding that there are another 18 such zones in the pipeline.

Also speaking at the event was Harold McGraw III of the Paris-based International Chamber of Commerce. McGraw said that many global mechanisms, such as the United States-led Trans-Pacific Partnership, will be "less successful" without China.

"Emerging economies should have a bigger say in global economic governance," said Jiang Zengwei, chairman of the China Council for the Promotion of International Trade.

Jiang said the current rules of global economic governance favor developed countries, but the need for reform amid a changing global economic situation can't be neglected.

"Reform of the World Trade Organization, World Bank and International Monetary Fund are all examples of such advancement," he said.

weitian@chinadaily.com.cn

GUANGDONG PROVINCE'S FOREIGN TRADE SECTOR SHRINKS IN APRIL

The foreign trade of Guangdong province fell by 18.7 percent in April, and a smaller decline is anticipated this month, the Guangdong Sub-Administration of China Customs said on Wednesday.

The fall in the province's foreign trade narrowed 1.7 percentage points to 23.5 percent in the first four months compared with the first quarter, the sub-administration said in a statement.

The value of Guangdong's imports and exports was 1.88 trillion yuan ($304.69 billion) in the first four months of this year, accounting for 23.2 percent of the national total.

Imports and exports through processing trade saw a smaller decrease in the January-April period, compared with the figures in the first quarter. Those through general trade increased 14.6 percent.

Guangdong is located in southeast China. It occupies a land area of 178,000 sq km and islands add a further 1,600 sq km. It is bordered to the south by 3,368 km of South China Sea coastline.

The province managed to increase trade only with the European Union in the first fourth months. Trade with Hong Kong and Taiwan dropped more than 40 percent.

Exports to the US grew slightly and the decline of imports from the US and Japan was narrowed.

Exports of machinery, electronic and high-tech products saw a smaller decline. Exports of labor-intensive products continued its upward trend, with substantial increases in plastic and lighting products.

Dongguan-based footwear maker Huajian Group recorded a 2 percent decline in exports in the first four months, partly attributed to the fact that March and April are the low season, company spokeswoman Qiu Xuxuan said. The group's exports were little changed last year, she said.

Qiu said exports are expected to stop declining over the rest of this year, with the high season coming between May and July. Issues facing the group include labor costs and stability of the workforce, she said.

The European and US markets have improved and external demand should continue to be positive for the rest of this year, said Zuo Liancun, a professor with the Institute of International Economy and Trade at Guangdong University of Foreign Studies.

With growing competition in manufacturing from countries like Vietnam and Malaysia, Chinese manufacturers are set to move up along the value chain, which should raise the value of exports.

Foreign investment by Chinese companies would also promote the export of related Chinese products, he said.

-Li Wenfang

A visitor tries out a bicycle at the 115th China Import and Export Fair in Guangzhou last month. China will keep trying to boost imports as it seeks a better balance in its trade, a senior trade official said on Wednesday. Xinhua

(China Daily USA 05/15/2014 page16)