Gov't should try new approach to address trade imbalance
(Xinhua)
Updated: 2006-09-12 10:12 If export growth slowed one percent, the growth rate of China's gross
domestic product would fall 0.2 percent, which would mean the loss of 900,000
job opportunities and export volume of 7.6 billion U.S. dollars. Domestic
consumption would fall by 5.4 billion yuan.
"The cost is enormous if it
is compared to the possibility of increasing imports," Shen said.
Dr.
Zhang Shengling of Beijing Normal University supports Shen's view. His research
report, which studied data from 1991 to 2005, showed that a rise of one percent
in consumer goods imports had generated a rise of 0.669 percent in domestic
consumption.
Besides, rising imports will also raise import tariffs revenue,
ease the anticipation of Renminbi appreciation, alleviate inflation pressure and
alleviate trade disputes, Shen added.
"So long as China remembers to
diversify the sources of its imported goods and not to rely too much on certain
countries, there will be no danger in increasing imports," he
said.
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