China to increase importation over balance of trade

EMERGING world economic power, China, has unfolded plans to, in the near future, increase the volume of its imports from around the globe, in order to reduce its foreign reserve and execute better trade balance with the rest of the world.A scholar from Beijing University of Posts and Telecommunications, Prof. Qiming Sun made this known recently in Beijing while educating visiting African information officers and journalists, on the economic performance of China in the recent past. He noted that though the country had a huge foreign exchange reserve, some countries believe that this great wealth was contributing to trade imbalance, more so with the devaluation of the U.S dollar in 2008, the country had lost so much of its wealth ($300 billion). 'China will lose more of its wealth if the U.S continues to devaluate,' he said.He added that rather than continue to stand the risk of losing more of its foreign reserve, the government of China had put in place policies that will encourage using the large forex to improve the living standard of the poor people in China, as well as, to better improveits relation with other countries. 'We will work towards more imports in the future to create trade balance,' he said.The trade volume of China with the rest of the world stood at 1.9 trillion Yuan (China's currency) in 2008 and is expected to hit 3.5 trillion Yuan by end of 2011. Prof. Sun said that by the time this is achieved, it would top world volume. China's GDP in 2010 was 3.97 trillion Yuan and is expected to hit 4.4 trillion Yuan by end of 2011. Despite this performance, the scholar said development in rural and urban China remained imbalanced.Much ofChina's imports have been iron ore, crude oil and high tech products, more of which it intends to import in the near future. 'China will import high tech products, iron ore and crude oil from resource rich countries. We will export less and import more to reduce our foreign exchange reserve. We won't stop exporting to countries that really need our products but we will export less energy reducing and environment depleting products,' he said, adding that the business of the future for China will be value added products and technologies to countries outside the United States.He said that theU.S currently does not allow it import much of its high tech product butaccusesChina of dumping its textile products in the U.S market.
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