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    No Lame Trade Power

    2011/7/25 14:36:00 35

    Not A Lame Trade Power

    In the era of economic globalization, expanding the scale of import trade is not an option for China's foreign trade development, but a necessary way.

    Starting from the high standards and strict demands of building a powerful trade nation, changing the growth mode of foreign trade should not only change the growth mode of export trade, but also strive to pform the growth mode of import trade.

    Otherwise, even if it's expensive for the world today.

    Trade

    Big country, a big trading country, is just a lame trade power.


    For a long time, due to the influence of the idea of "reward and entry restriction", China has encouraged more development of export trade and less encouragement to develop import trade.

    In reality, exports are often considered to be money making matters, and imports are considered more expensive. Therefore, the departments concerned are basically "encouraging" for export trade, while import trade is more "management".

    In fact, there are still many things that China needs to do to promote import trade.

    For example, in addition to the high proportion of import licences, customs inspection and quarantine, banking services,

    Taxation

    Services and other aspects have also been improved.

    Now it seems that China will focus its efforts on changing the growth mode of import trade in the aspects of optimizing import structure, promoting import convenience and improving the promotion system.


    We have worked hard for a long time to expand import trade. For example, the central economic work conference in 2006 proposed for the first time that we should actively expand imports.

    Generally speaking, the state is taking or ready to take a series of measures to expand imports, such as actively importing resources, advanced technology and key equipment, etc., according to the requirements of industrial policies, properly handling trade frictions and disputes, encouraging the increase of independent trade surplus countries, further optimizing the import tariff structure, continuing to increase the level of trade facilitation, reducing import costs and costs, constantly improving the import of public information service system, improving policy pparency, holding various import exhibitions, fairs and promotion meetings, and actively studying the use of various financial and tax means to support the expansion of imports; and continuing to organize various forms of investment.

    Trade

    We will actively promote investment and trade promotion activities abroad.

    The initial impression is that these measures are not only reasonable, but also more operable.


    As for the challenges that China will face in the development of import trade in the future, my view is also very clear. The main concerns are four aspects:


    First of all, exporters use market dominance to restrict China's import of large resource goods.

    Not long ago, the combination of BHP Billiton and Rio Tinto further strengthened the seller concentration of iron ore trade in the international market to a large extent.

    Therefore, BHP Billiton continuously raised its price in the negotiation process of iron ore prices with Chinese steel enterprises.

    Not only that, BHP Billiton has started bidding for Canada's potash mine recently, although the final result has not yet been seen, but the desire of BHP Billiton to occupy the hole has become clear.

    When the seller has a dominant market position, the price of iron ore has been paid by China's manufacturing industry, and the price of potash will probably be paid by China's agriculture, and the latter will pose a greater threat to the Chinese economy.


    Secondly, the restrictions of export countries on export trade to a large extent impede the development of China's import trade.

    The United States always says trade imbalance between China and the United States.

    Indeed, China's imports from the United States are less than China's exports to the United States, but this is not entirely caused by China.

    The Chinese do want to buy it, but the Americans have to sell it.

    The most competitive products in the United States lie in high-tech products.

    However, because of the Cold War mentality, the US has been exporting to China.

    high technology

    The product has set up extremely demanding obstacles.

    Although the US side has said recently that it will relax restrictions on the export of high-tech products to China, so far, it has only seen staircases, and no one has come down.


    Thirdly, with China's accession to the world trade organization, China has made great strides in trade liberalization in recent years.

    At present, not only the total tariff level of China's imports has dropped to 9.8%, far lower than the average tariff level of developing countries.

    However, at present, China's biggest obstacle to encouraging imports is the "hidden rules" obstacles.

    Figuratively speaking, we now export 24 hours a day to declare customs, but import is not necessarily able to enjoy this treatment.

    Since different import fields are allocated to different ministries and commissions, the coordination cost has been increased.

    The problem now is that at present, there are more ministries in charge of import work in China, including the NDRC, the Ministry of Commerce and the Ministry of finance. The coordination costs are high, inefficient and difficult, which is not conducive to the expansion of imports.


    Besides, how to be a good buyer is a formidable challenge.

    On the one hand, due to the extensive mode of economic growth and the loosening of industrial organizations, China lacks the right to speak in the international market in the process of importing bulk products.

    On the other hand, due to the imperfect domestic circulation system, imported goods not only have high paction costs, but also have many inconveniences in after-sale services, so the imported consumer goods are widely accepted by domestic consumers and much more needs to be done.

    In addition, the blind expansion of imports or the impact on the industry is another problem that we must pay attention to in the process of expanding imports.


    In short, the above four aspects should arouse our attention.

    Otherwise, if the export trade is not developing rapidly for a long time, the hat of the lame trade giant will not be lost for China. Of course, the hat of the trade power will be even less.


     

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