Commerce Minister Chen Deming Solves "Luxury Is More Expensive Than Overseas".

Mainland market

"12th Five-Year" business logistics planning

As for the reasons why "luxury is more expensive than overseas", Chen Deming explained at the summit of China Development Forum in 2011 that there were three main reasons: first, some overseas markets had no customs duties, such as the zero tariff policy in Hongkong.

Two, the mainland's high-end consumer goods distribution system has just been established, with many levels and large costs, which has increased the paction costs of high-end consumer goods in the mainland.

Three, after the financial crisis, overseas products were discounted and depreciate in order to promote consumption in their countries.

Chen Deming said that many international brand-name products were produced in China, and why they were sold domestically after export, which increased carbon dioxide emissions and increased logistics costs.

He believes that it is necessary to explore ways to sell domestic products exported directly to the domestic market.

He also revealed that China is formulating the "12th Five-Year" business logistics plan, "will enable the third party logistics and large chain distribution enterprises to play their full role" and reduce the paction cost of commodity circulation.

Chen Deming said that China's imports of high-end consumer goods ranked second in the world, second only to Japan. "It is possible that Japan will become the number one in a few years. This is not surprising, because China has a population of 1 billion 300 million, and Japan is less than 1/10 of our population."

First quarter or current deficit

Last year, China's exports reached the top of the world, and imports reached second of the world. The trade surplus accounted for about 3.1% of GDP.

Chen Deming said: "our trade surplus or surplus in GDP may be less than this figure this year, which shows that China is very responsible and is committed to promoting trade balance."

Chen Deming predicts that after 5-10 years, China will gradually realize the basic balance between capital input and output.

According to Chinese customs statistics, in 2009, China's trade surplus was reduced by 100 billion US dollars than in 2008, and in 2010 it was further reduced by 12 billion 600 million US dollars.

Trade deficit occurred in the first two months of this year and early March.

The deficit in February was $7 billion 300 million, which is not only the first monthly trade deficit in China after a lapse of 11 months, but also the largest monthly deficit in 7 years.

According to reports, Chen Deming said that China may have a deficit in the first quarter of this year.

"We need to buy something".

Chen Deming talked about China's trade structure in particular.

He said that 99% of China's trade surplus is against an export power, and it is already in deficit with ASEAN, Japan, South Korea, Africa and South America. "So we very much hope that this big country can sit down and discuss how to improve our trade structure.

Bilateral trade surplus does not reflect the issue of RMB exchange rate.

Chen Deming particularly reiterated China's aspirations.

He pointed out that as China is in the process of industrialization, a large number of enterprises are in the process of changing their structure and adjusting methods. They need advanced technology, equipment, resources and raw materials, but some countries are limited.

"What we need to buy is blocked by some parliamentary bills.

So we can not imagine that on the one hand there are many sanctions against China, and on the other hand, we must balance our trade with China. "

Chen Deming said.