On December 13, the day before the First Sino-US Strategic Dialogue, China and the United States signed four contracts. This not only indicates that China is increasing its import from the United States and opening wider its market, but also foreshows China will make significant adjustment on its trade policy as of 2007, i.e. “positively increasing import”.

The recently held China’s Central Economic Work Conference, which draws up major economic strategies and policies for 2007, calls on “positively increasing import while maintain rational increase of export and utilization of foreign funds”. For the first time China definitely puts forward the concept of “positively increasing import” in many years.

For many years, making endeavor to expand export has been the dominant orientation for China’s foreign trade policies. In the proceedings of Central Economic Work Conference held over the past few years, there are always phrases like “make endeavor to expand export”, “make endeavor to promote export”, “encourage and support to expand export”, “increase the technological added value of export commodities and optimize the mix of export products”, etc. 

Authoritative person said, the new statement, which is put forward under the background of fast and steady economic growth, rapid growth of export and increasing favorable trade balance, indicates that China will make major readjustment to its foreign trade strategies.

Since China joined the WTO, the export from China has been growing rapidly, from the US$ 245 billion in 2001 to near 800 billion at present. Meanwhile, the favorable trade balance has also increased from US$ 22.54 billion in 2001 to the 101.8 billion in 2005. In the first 11 months of 2006, the favorable trade balance had topped US$ 157 billion, an increase of 66 billion over the same period of 2005.

The unbalanced international payment position has become a prominent problem in China’s economic operation and the big favorable trade balance has led to many trade disputes and deteriorated the environment for China’s export and increased the pressure of RMB revaluation.

Responsible person from the Ministry of Commerce said, the Ministry of Commerce will act as the spirit of the Central Economic Work Conference and it will work together with relevant departments of the State Council to work out effect measures to positively increase import while maintain the increase of export and utilization of foreign funds and promote balanced development of foreign trade.

According to the Ministry of Commerce, in 2007, China will utilize such economic means as tariff regulation and encourage the import of key parts for important equipment, advanced technology and equipment as well as major resource commodities.

In addition, the Ministry of Commerce also said that the state would give monetary support to promote import, expand the import from under-developed countries, especially African nations, sort out various non-tariff measures, and open the market and improve the trading environment on the basis of equality and mutual benefit.