Encouraging Imports instead of Reducing Exports

Decreasing the percentage of trade surplus to China’s GDP is important to reduce trade frictions

Expanding Imports

China Import Forum 2011 organized by the Ministry of Commerce of China was held in Shanghai on September 29. Zhong Shan, Vice Minister of Commerce and Deputy China International Trade Representative, attended and delivered a speech entitled "continue to strengthen imports, and promote the coordinated development of trade". Zhong Shan pointed out that China had been fully aware that imports played an important role in Chinese economy, and promoting the imports was a necessary requirement for Chinese alteration of economic development pattern, adjustment of economic structure, and sustainable development of foreign trade. Zhong Shan stressed that strengthening imports should follow six insistences: insisting on coordinated development of imports and exports; insisting on coordinated development of imports and domestic industries; insisting on combination of imports and domestic distribution; insisting on combination of imports and Chinese corporations going out; insisting on combination of imports and market diversity; insisting on combination of market mechanism and government guidance. Zhong Shan stressed five points to expanding imports: improving the relevant policies to support imports including fiscal support, financial services, import credit, import credit insurance system, and optimizing the tariff structure; creating a favorable trade environment; strengthening import promotion; improving public services for imports; improving the core competitiveness of corporations.

Encouraging Chinese Enterprises to Go Out (OFDI)

Reducing Trade Frictions through OFDI

Japan’s experience

Encouraging the U.S. and EU to Export More High-tech Products to China

The U.S. and EU’s export controls of high-tech products against China Encouraging the U.S. and EU to Relax High-tech Products Export Controls against China

To Export More High-tech and High Value-added Products Trade disputes occurred mostly in low-tech, low value-added and low-end products

TimeCase 26 March 2002Definitive Safeguard Measures on Imports of Certain Steel Products 18 March 2004Value-Added-Tax-on Integrated Circuits 30 March 2006Measures Affecting Imports of Automobile Parts 30 March 2006Measures Affecting Imports of Automobile Parts 13 April 2006Measures Affecting Imports of Automobile Parts 2 February 2007 Certain Measures Granting Refunds, Reductions or Exemptions from Taxes and Other Payments 26 February 2007 Certain Measures Granting Refunds, Reductions or Exemptions from Taxes and Other Payments 10 April 2007Measures Affecting the Protection and Enforcement of Intellectual Property Rights 10 April 2007 Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products 14 September 2007 Preliminary Anti-Dumping and Countervailing Duty Determinations on Coated Free Sheet Paper 3 March 2008 Measures Affecting Financial Information Services and Foreign Financial Information Suppliers 3 March 2008 Measures Affecting Financial Information Services and Foreign Financial Information Suppliers 20 June 2008 Measures Affecting Financial Information Services and Foreign Financial Information Suppliers 19 September 2008 Definitive Anti-Dumping and Countervailing Duties on Certain Products Table: Trade disputes on record between China and WTO members since China ’ s entry into WTO

19 December 2008 Grants, Loans and Other Incentives 19 December 2008 Grants, Loans and Other Incentives 19 January 2009 Grants, Loans and Other Incentives 17 April 2009Certain Measures Affecting Imports of Poultry 23 June 2009Measures Related to the Exportation of Various Raw Materials 23 June 2009Measures Related to the Exportation of Various Raw Materials 31 July 2009Definitive Anti-Dumping Measures on Certain Iron or Steel Fasteners 21 August 2009Measures Related to the Exportation of Various Raw Materials 7 May 2010Provisional Anti-Dumping Duties on Certain Iron and Steel Fasteners 15 September 2010 Certain Measures Affecting Electronic Payment Services 15 September 2010 Countervailing and Anti-Dumping Duties on Grain Oriented Flat-rolled Electrical Steel 13 December 2010 Measures Affecting Imports of Certain Passenger Vehicle and Light Truck Tyres 22 December 2010 Measures concerning wind power equipment 4 February 2011 Anti-Dumping Measures on Certain Footwear 28 February 2011 Anti-Dumping Measures on Shrimp and Diamond Sawblades 25 July 2011Definitive Anti-Dumping Duties on X-Ray Security Inspection Equipment 20 September 2011 Anti-Dumping and Countervailing Duty Measures on Broiler Products

Increasing the proportion of high-tech and high value-added products in China’s exports