Truth behind China-US trade 'imbalances'

UNWAVERING IN OPENING UP

When handling economic ties with other countries, a trade surplus is not what China seeks. Faced with setbacks in economic globalization and free trade, China has continued to be unwavering in opening up its economy.

Take the opening up of the service sector for example. Even though China holds a big service trade deficit with the United States, it has been taking big steps to further open the sector, and more measures are in the pipeline.

Vice Minister of Commerce Wang Shouwen said on Sunday that China will widen market access in finance, telecom, heath care, education, and elderly care for foreign investors, and will ease restrictions on foreign holdings in financial businesses including banks, brokerages, and funds.

"We will unveil timetables and roadmaps to open up sectors including finance, new energy vehicles, and gas stations," Wang said while addressing the China Development Forum in Beijing.

The commitment to opening up was in contrast with the country's deficit of 255.4 billion US dollars in service trade last year.

"We have as always supported free, fair trade," Wang said.

China has opened 120 industries related to service trade for foreign investors, surpassing the goal of 100 industries set when China joined the World Trade Organization nearly two decades ago.

In free trade zones, the government has fully liberalized many sectors closely watched by foreign investors, including credit ratings, accounting, e-commerce, power batteries, and railway traffic equipment, Wang said.

China has also cut red tape in foreign investment with many approval procedures simplified or scrapped, and more favorable policies can be expected, according to the vice minister.