China Takes Big Steps, Aims for $1 Trillion in Imports by 2010
The Ministry of Commerce said, "China has never pursued a big trade surplus. The current surplus is a result of international demand and supply."
Indeed….the world wants more of what China has to give than China wants of what the world has to offer.
However, China has announced a bold goal of $1 trillion (that's a T) in imports by 2010…up more than 25% from the $792 billion last year.
Last year…China's trade surplus hit $177.5 billion.
The country announced it will eliminate or cut tax rebates on more than 2,800 export items starting July 1st.
Eliminated -
553 categories – cement, fertilizer and non-ferrous metals
Slashed are "Easy to trigger trade frictions" -
2,268 products – garments, toys, steel products and motorcycles from 5-17%.
In the end, however, it will still be supply and demand, costs and savings. As long as it is cheaper to manufacture and ship things from China than it is to make them at home, China will be the world's factory.
And…as long as China can make things at home more cheaply than they can purchase them overseas, the Chinese will shop at home.
One final point…the Chinese aren't in a hurry either.
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