to increase imports
Policy reflects strong demand
of domestic economic development
By ZONG HE
Chinese Minister of Commerce Lu Fuyuan announced
a shift in government policy in July, encouraging
domestic companies to increase their imports
The policy shift reflects the nation's ample
foreign-exchange reserves and the government's
desire to promote global economic growth.
China will realize an import volume worth US$1
trillion in the next three years and become
the world's second largest purchaser in 20 years,
only after the United States.
The Chinese Government encourages domestic companies
to increase imports as well as expand exports
because increased imports are expected to also
fuel domestic economic growth and make a contribution
to world economic growth.
Lu indicated he is not at all worried about
the 44 per cent faster-than-exports growth in
imports in the first half of this year, or a
probable resulting trade deficit this year,
which China has not seen for years since the
1997 Asian financial crisis. The rapid growth
in imports is mainly driven by robust domestic
economic growth. It's a natural result of high
He said the rapidly-expanding economy needs
to import large amounts of raw materials and
parts, adding that imports could not register
such a high growth without sound economic growth
in China. China has fulfilled its World Trade
Organization (WTO) commitments and reduced tariffs
markedly. The high price of oil due to the Iraqi
War also contributed to the increase in import
Big tariff cuts since China's entry to the WTO
also contributed to the high increase in imports.
This is especially true for some telecommunication
products such as mobile phones, which now have
However, China is not worried by the increase
in imports, as China's rich foreign currency
reserves provide flexibility in terms of increasing
exports, if necessary.
Lu said, China will maintain the value of its
currency in line with the fundamental interests
of the Chinese people and China's national economy.
The major task of the country at present is
to maintain stable economic growth. The current
policy of maintaining the value of the currency
does not rule out future adjustments or changes.
He also stressed that currency policy adjustment
should be based on the domestic situation of
a nation. No country in the world makes currency
adjustment decisions based on the international
situation alone, without analyzing its domestic
The next decades will see China enjoying rapid
economic growth with GDP expected to quadruple
to US$4 trillion.
7th CIFIT to kick off in Xiamen
Fair offers a platform for co-operation
By HU MEIDONG and DUAN RUOLAN
Editor's note: Phoenix TV, China Daily and China
(Xiamen) Investment Promotion Centre have co-organized
a forum for provincial governors and ministers to
voice their views on economic and trade issues prior
to and during the Seventh International Fair for Investment
and Trade. The following is an interview with Ye Shuangyu,
vice-governor of Fujian Province.
Holding great expectations from around the globe,
the seventh China International Fair for Investment
and Trade (CIFIT) is scheduled to be carried out on
September 8 to 11 in the port city of Xiamen, in Southeast
China's Fujian province.
"CIFIT is well on the track to become a stage
for international capital flows and policies and information
releasing," said Ye Shuangyu, vice-governor of
Fujian Province and secretary general of the seventh
As an acknowledge of CIFIT's increasing influence,
the United Nations Conference on Trade and Development
will attend the seventh session as a co-sponsor of
the fair and will issue its 2003 World Investment
Report on September 8 for the first time in Xiamen,
according to Ye.
Apart from the International Investment Forum, sponsored
by the Ministry of Commerce, approximately 40 high-level
seminars and forums focusing on such hot issues as
major sectors opened to overseas investors as China
becomes a World Trade Organization (WTO) member, trade
and investment barriers, investment strategies and
logistics will highlight the fair.
Sponsored by the Ministry of Commerce, the CIFIT is
regarded as not only China's major State-level investment
promotional fair in this field but an event that will
beef up the country's foreign trade and investment
of this year, said Ye.
Thanks for the hard work of relevant departments,
preparatory work of the seventh CIFIT under goes smoothly.
Fair organizers acclaim wide participation from 45
units across the country ranging from delegations
from provinces, autonomous regions and municipalities
directly under the central
government to organizations from ministries and chambers
Such countries and regions as the United Kingdom,
Canada, Hong Kong and Caribbean countries will hold
special promotional activities to demonstrate their
economic and trade opportunities during the fair.
"To guarantee a safe session, organizers of the
CIFIT doubled their efforts in preventing and curbing
possible diseases,'' said Ye.
The Xiamen municipal government made public two sets
of regulations on handling emergent public hygienic
crisis and on safeguarding health of participants.
Ye also pointed out that on its way to be an influential
international investment event, CIFIT should further
update its role as an investment promotional base.
"The sponsors and organizers should make long-term
schemes, set up a service centre for investment projects,
improve information and communication efficiency and
foster investment organizations,'' said Ye.