China targets foreign trade ‘balancing’

%3CFONT%20face%3DVerdana%3EAgainst%20a%20backdrop%20of%20a%20high%20trade%20surplus%20and%20protectionist%20measures%20targeting%20China%20strengthening%2C%20China%20is%20committed%20to%20%22balancing%22%20foreign%20trade%20through%20%22stabilizing%22%20exports%20and%20%22boosting%22%20imports%20over%20the%20next%20five%20years%2C%20the%20minister%20of%20commerce%20said.%3CBR%3E%22There%20are%20uncertainties%20in%20global%20economic%20prospects%20%28over%20the%20next%20five%20years%29%2C%20but%20China%20has%20no%20choice%20but%20to%20go%20ahead%2C%22%20Commerce%20Minister%20Chen%20Deming%20said.%3CBR%3EThe%20ministry%27s%20five-year%20plan%20will%20focus%20on%20%22making%20foreign%20trade%20more%20balanced%20and%20improving%20the%20quality%20of%20goods%20for%20export%20by%20way%20of%20innovation%22%2C%20he%20said.%3CBR%3EChen%27s%20remarks%20are%20in%20line%20with%20the%20outcome%20of%20the%20recent%20three-day%20Central%20Economic%20Work%20Conference%2C%20in%20which%20the%20State%20Council%20pointed%20out%20that%20China%20will%20continue%20to%20stabilize%20and%20develop%20external%20demand%2C%20promote%20imports%2C%20and%20add%20value%20to%20exports.%3CBR%3ECustoms%20statistics%20show%20China%27s%20trade%20surplus%20hit%20%2422.9%20billion%20in%20November%2C%20the%20fifth%20month%20it%20registered%20above%20%2420%20billion%20this%20year%2C%20although%20the%20surplus%20fell%20from%20a%20peak%20of%20%2428.7%20billion%20in%20July%20and%20also%20shrank%20from%20October%27s%20%2427.1%20billion.%3CBR%3EThe%20United%20States%20has%20been%20threatening%20to%20punish%20China%20for%20what%20some%20politicians%20and%20commentators%20have%20called%20%22an%20undervalued%20currency%22.%20The%20US%20Senate%20Foreign%20Relations%20Committee%20Chairman%20John%20Kerry%20said%20the%20US%20Congress%20was%20growing%20impatient%20with%20China%20over%20the%20currency%20issue%20and%20may%20take%20action%20next%20year.%3CBR%3EDespite%20claims%20that%20the%20Chinese%20government%20has%20recently%20made%20stating%20that%20the%20trade%20surplus%20will%20gradually%20narrow%2C%20most%20economists%20believe%20it%20will%20still%20stay%20above%20%2420%20billion%20in%20the%20foreseeable%20future.%3CBR%3E%u201COn%20the%20one%20hand%2C%20we%20needn%27t%20worry%20too%20much%20about%20exports%20as%20external%20demand%20will%20be%20stable%2C%20but%20on%20the%20other%20hand%2C%20imports%20cannot%20increase%20quickly%20enough%20although%20they%20are%20rising%2C%22%20said%20Jinny%20Yan%2C%20an%20economist%20at%20Standard%20Chartered%20Bank.%3CBR%3EChina%20has%20been%20making%20headway%20in%20balancing%20trade%20over%20the%20last%20year%20but%20many%20developed%20nations%20have%20accused%20emerging%20markets%2C%20including%20China%2C%20of%20being%20responsible%20for%20global%20trade%20imbalances.%3CBR%3EChen%20pointed%20out%20that%20China%20has%20managed%20to%20stabilize%20exports%20by%20helping%20manufacturers%20and%20exporters%20shift%20their%20focus%20to%20emerging%20markets%20where%20the%20financial%20crisis%20was%20less%20severe%20than%20in%20developed%20countries.%3CBR%3EIn%202009%2C%20China%20overtook%20Germany%20to%20become%20the%20largest%20global%20exporter%2C%20according%20to%20the%20World%20Trade%20Organization.%20China%27s%20exports%20in%202009%20came%20to%20%241.2%20trillion%2C%20while%20Germany%20exported%20%241.12%20trillion%20in%20goods%20and%20services.%20The%20US%2C%20with%20exports%20of%20%241.06%20trillion%2C%20was%20third.%3CBR%3EAnd%20since%20July%2C%20when%20China%27s%20trade%20surplus%20reached%20%2428.7%20billion%2C%20the%20highest%20since%20February%202009%2C%20the%20focus%20switched%20more%20to%20imports%20to%20narrow%20the%20surplus.%20In%20September%2C%20the%20government%20said%20it%20will%20vigorously%20increase%20imports%20of%20key%20products%20to%20cut%20the%20surplus.%3CBR%3E%22We%20will%20pay%20equal%20attention%20to%20rural%20and%20urban%20areas%20in%20terms%20of%20stimulating%20domestic%20consumption%2C%20but%20our%20priority%20will%20always%20be%20on%20safety%2C%20reliability%20and%20convenience%20of%20the%20products%2C%22%20Chen%20said.%3CBR%3EInvesting%20overseas%3CBR%3EBesides%20%22more%20balanced%20trade%22%2C%20the%20ministry%20is%20also%20%22encouraging%20more%20qualified%20and%20capable%22%20Chinese%20enterprises%20to%20invest%20overseas%20over%20the%20next%20five%20years.%20Chen%20believes%20this%20will%20play%20a%20significant%20role%20in%20%22helping%20China%20enhance%20its%20competitiveness%20in%20the%20global%20market%22.%3CBR%3EFrom%20January%20to%20October%2C%20China%27s%20outbound%20direct%20investment%20%28ODI%29%20in%20the%20non-financial%20sector%20reached%20%2447.6%20billion%2C%2037%20percent%20of%20which%20was%20realized%20through%20mergers%20and%20acquisitions.%3CBR%3ELast%20year%2C%20China%27s%20ODI%20in%20the%20non-financial%20sector%20rose%206.5%20percent%20year-on-year%20to%20%2443.3%20billion%20although%20foreign%20direct%20investment%20slumped%20worldwide%20in%202009.%3CBR%3E%22The%20next%20five%20years%20will%20probably%20be%20a%20historically%20crucial%20period%20for%20Chinese%20enterprise%20expecting%20to%20expand%20overseas%2C%22%20Chen%20said.%3CBR%3E%3C/FONT%3E