From Chinese Press
Not pursuing trade surplus
(China Daily)
Updated: 2010-08-19 09:04
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China's trade surplus may not change during the rest of the year, but it has already fallen to an internationally accepted level since the global financial crisis. China has never pursued trade surplus and, hence, it is unfair to blame it for the global trade imbalance, says an article in People's Daily. Excerpts:
Unlike other major exporters such as Germany and Japan, China does not have a long history of trade surplus. China's trade surplus grew rapidly only after 2005.
Over the past few years, foreign-funded companies have been responsible for China's huge trade surplus. In return, they have become the major beneficiaries.
China's economic trend and growth both have fueled its trade, making it one of the world's biggest exporters. Made-in-China products have not only helped the domestic economy to grow, but also benefited the importing countries because of their low prices.
Despite all this, China is not pursuing trade surplus, because excessive trade surplus will do no good to the long-term development of its economy. The country is in great need of more imports, especially high-end products.
But many developed countries have imposed a strict and discriminative ban on such products, leading to rising trade imbalance between them and China.
The trade imbalance can be corrected only if China and its overseas markets meet each other's demands through free trade.
The developed countries should lift their ban on the export of high-end products, which give them additional advantage and which China needs desperately to correct the trade imbalance.
(China Daily 08/19/2010 page9)