Chen Deming: China's trade surplus or further decline

Chen Deming, Commerce minister, said at a press conference yesterday that the overall situation of China's foreign trade was generally optimistic, but there were still some uncertainties. He also pointed out that China's export growth could come down this year as a result of the risk factors for the global economic recovery and the continued rise in domestic labour and raw material costs. However, with the promotion of domestic industry and the related import facilitation policy, China's import growth rate will be higher than exports.　　As a result, he predicts a further decline in China's trade surplus as a share of GDP in the future, and perhaps even a trade deficit in some months this year. In fact, this direction is consistent with the government's goal of reducing the trade surplus. Chen Deming called on the U.S. government to lift some of its controls on exports to China, as more than 90% of its trade surplus actually comes from the US. He said China would increase imports of products from the least developed economies and major trade deficit countries to promote a trade balance.　　He also suggested from a personal point of view that China should reduce tariffs to stimulate imports of some raw materials, high-tech equipment and machinery parts. Chen Deming reiterated at a press conference that China will take vigorous measures to curb inflation. He said the Ministry of Commerce will support the development of agricultural logistics to reduce transport, storage costs and improve food safety issues. In response to questions about the appreciation of the renminbi, Chen pointed out that China will promote the reform of the RMB exchange Rate mechanism under the active, progressive and controllable principle. He said China should consider the impact on domestic industry and employment when adjusting the RMB exchange rate.