China needs to maintain trade surplus -vice minister

BEIJING, Dec 28 (BestGrowthStock) – It is essential for China to
maintain a trade surplus and expand its share of global trade, a
senior official said in comments reported on Tuesday that
appeared to cut against the government’s pledge to seek more
balanced trade ties.

Zhong Shan, a vice commerce minister, said Beijing did indeed
want a “basic balance” in trade, but only in relative terms.

“A balance in trade is a relative balance, not an absolute
balance. China is a developing nation; at the present stage it is
very necessary to maintain a reasonable surplus,” he said in
comments published in the China Securities Journal.

“Our foreign trade growth must be faster than the overall
level of global trade growth, otherwise our country’s share of
global trade will fall,” Zhong said.

His comments could add fuel to foreign criticism of Chinese
policies, seen as giving the country’s exporters an unfair
advantage and thereby crimping other’s chances of generating jobs
through exports.

The United States and Europe, among others, have long said
that China depresses the value of its currency, making its
products cheaper.

Allegations of industrial subsidies have also started to pile
up. The United States began a legal challenge at the World Trade
Organisation last week against Chinese subsidies for wind power
equipment manufacturers and warned that it could file additional
cases against Beijing’s policies in the clean energy sector.

China’s trade surplus was $196 billion last year and it is on
track to reach about the same level this year.
(Reporting by Simon Rabinovitch; Editing by Chris Lewis)

China needs to maintain trade surplus -vice minister