Source: Mary Swire¸ www.tax-news.com Hong Kong
In the opinion of its Minister of Commerce Chen Deming¸ China has¸ since the outbreak of the international financial crisis¸ instituted policies so as to expand domestic demand and stimulate imports while stabilising exports¸ and has¸ thereby¸ become an important factor in promoting balanced global trade.
He noted that¸ between 2008 and 2010: “China’s imports soared by 23.3%¸ creating a trillion-dollar market for the rest of the world. At the same time¸ its trade surplus shrank from nearly USD300bn at its peak in 2008 to USD107.1bn as of the first three quarters of 2011¸ decreasing as a percentage of gross domestic product from 6.5% per cent to 2.2%.”
The growth in imports is¸ it was said¸ the result of policies introduced by the Chinese government that included the expansion of domestic demand and the greater liberalisation of trade and investment. For example¸ import licensing requirements have been phased out for more than 800 tariff lines¸ and customs duties have been abolished on goods from 95% of the world’s least-developed countries.
China is now the largest export market for Japan¸ South Korea¸ South-East Asia¸ Brazil and South Africa. It is the second-largest export market for the European Union¸ and the third largest for the US.
Chen predicted that¸ as China implements a more proactive strategy to open up its economy¸ its imports will exceed USD1.7 trillion this year¸ and amount to roughly USD10 trillion over the next five years¸ on a par with its exports.
However¸ he concluded: “It is a cause for concern that particular countries are disregarding China’s efforts to promote balanced global trade¸ and have been politicising economic issues¸ using protectionist trade and currency arrangements to bash China for political reasons.”
Picture Source: baiduplanet