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          Chinese Commerce Minister holds news conference

            
          China's foreign trade to slow to 7 pct in Jan-Feb

          China's export and import growth is anticipated to slow to around 7 percent year-on-year for the first two months of 2012 due to seasonal factors, Minister of Commerce Chen Deming said Wednesday.
          Speaking at a press conference, Chen said he believes China will continue to see a modest increase in foreign trade this year, with the situation likely to improve in the second half of the year.
          He said China will be able to achieve the 10-percent foreign trade growth specified in Premier Wen Jiabao's government work report, which was delivered to the annual session of the National People's Congress (NPC), the national legislature, on Monday.
          "With our efforts, the annual 10-percent growth target for foreign trade is attainable," he said.
          The General Administration of Customs will release official trade data for February later this week.
          During the first two months of 2011, China's foreign trade totaled 495.83 billion U.S. dollars, representing a 28.3-percent year-on-year growth.
          Chen attributed this year's slowdown in foreign trade to tighter environments at home and abroad and the deepening of the global financial crisis, citing the impact of the European debt crisis on consumption.
          Domestically, rising costs have pushed up the prices of goods and services, he said.
          Since August last year, China's exports have slowed, from a year-on-year growth of 27.8 percent in August to 12 percent in December.
          To achieve a 10-percent growth in imports and exports, Chen said China needs to stabilize its import and export policies, reduce tax burdens and increase financial support for exporters.
          While stabilizing exports, China will continue to encourage imports of advanced technology, equipment, raw materials and consumer goods to balance trade with countries that account for the majority of China's trade surplus, he said.
          The minister pledged to establish more trading mechanisms in order to encourage more underdeveloped countries and emerging economies to trade with China this year.
          China's trade surplus had dropped for four years in a row in 2011, with the trade surplus accounting for only 2.1 percent of the country's GDP.
          China has set a good example by meeting a guideline for Group of 20 countries that requires their trade surplus-to-GDP ratios to remain below 4 percent, Chen said.
          The guideline was proposed by the United States and discussed by China and other G20 countries.


          China, U.S.trade imbalance questionable

          Commerce Minister Chen Deming said Wednesday that the trade imbalance between China and the United States is "questionable" and "should be rethought" with the fact of China's huge trade surplus with the United States.
          Chen said at a press conference during the parliamentary session that China's overall trade surplus was about 150 billion U.S. dollars in 2011, but the surplus with the United States totalled more than 200 billion dollars.
          "Anyone with a basic knowledge of economics can find a clear conclusion," Chen said while commenting on the relationship between exchange rates and China-U.S. trade issues.
          During his visit to the United States last month, Vice President Xi Jinping called on the United States to address the China-U.S. trade imbalance.
          "It is very important for the United States to adjust its economic policies and structure, including removing various restrictions on exports to China, in order to address the trade imbalance," Xi said.
          In 2011, China's trade surplus-to-GDP ratio dropped from over 7 percent to 2 percent, moving within a "reasonable range by international standards," according to Xi.
          "The reform of the yuan's exchange rate formation mechanism has played an important role in this process," Xi said.
          The yuan's exchange rate has stayed within a reasonable range and China will keep it at a stable level while making it more flexible, Chen said, noting all countries should maintain the stability of their currencies' exchange rates in light of the global economic crisis.
          Deliberate currency devaluation is "not desirable" and will undermine economic recovery, Chen said.
          When commenting on export conditions to Europe, Chen said he is confident that Europe is capable of walking out of its debt crisis, and China has encouraged its enterprises to export and invest in Europe.
          Europe is China's top trading partner and the largest source of technology imports, its development and prosperity are closely bound with China, Chen said.


          U.S. anti-subsidy duties on Chinese imports not within int'l rules

          The passage of a bill by the U.S. Senate to empower the Department of Commerce to impose countervailing duties on Chinese imports is not in line with international rules and must be corrected, Minister of Commerce Chen Deming said at a Wednesday press conference.
          The minister's remark came after the U.S. Senate on Monday passed a bill to allow the Department of Commerce to impose countervailing duties on imports from China and Vietnam.
          Chen reiterated that China will only follow the rules of those international organizations it has joined. In terms of economics and trade, for example, China has followed the rules of the WTO since acceding to the WTO 11 years ago, Chen said.
          "But we don't have the obligation to abide by any domestic laws and regulations that are not in line with the rules of international organizations," Chen said.
          WTO rules divide government subsidies into prohibitive subsidies and actionable subsidies, with most WTO members handing down subsidies of different types, Chen said.
          Since the onset of the global financial crisis, many countries, particularly the United States, have subsidized automobile companies in the form of bailouts, he said.
          China did not come up with new subsidies during the global financial crisis in response to an appeal by the Group of 20, nor did China launch massive countervailing measures against such subsidies by other countries, Chen said.
          The U.S. bill was a response to a U.S. Federal Court ruling on Dec. 19, 2011, stating that the U.S. Commerce Department does not have the legal authority to impose countervailing duties on goods from non-market economy countries.
          The court explained that government payments cannot be characterized as "subsidies" in an non-market economy context, saying the Obama administration lacked legal ground to impose a three-year tariff on imports of low-grade Chinese tires in September 2009.
          Both the U.S. House and the Senate acted quickly after the hearing to introduce a bill to remedy the Tariff Act of 1930 and overturn the Federal Court's decision.
          Chen said he "can't understand" why the U.S. has imposed high tariffs on imports from China in the form of 31 anti-dumping and anti-subsidy measures and failed to correct its own mistakes after a court ruling.
          The minister said China hopes to discuss the issue with countries that have accused China of giving out prohibitive subsidies.
          "Let me be clear: there are no prohibitive subsidies handed down by the Chinese central government," Chen said.


          China calls for transparency in US' ITEC operation

          China hopes that the newly-established U.S. federal agency targeting "unfair trade practices" will operate transparently, Minister of Commerce Chen Deming said Wednesday.
          China has noticed that the Interagency Trade Enforcement Center (ITEC) has been set up, said Chen at a press conference, adding that the country was willing to communicate with it under the WTO rules.
          The ITEC is expected to coordinate the enforcement of U.S. trade rights under international trade agreements and enforcement of domestic trade laws, according to a previous statement from the White House.
          Economic and trade ties between China and U.S. serve as an important foundation for the bilateral relations and are in line with the long-term interests of the people of the both sides, said Chen.
          Chen noted that China has been strictly abiding by its commitment made at the G20 summit in Cannes that all countries should avoid introducing new trade protectionism measures, while the U.S. side introduced such an agency at this time.
          "We are paying close attention to its operation and watching whether it obeys the rules of international trade," Chen added.
          Chen also pledged to protect the legitimate interests of Chinese corporate citizens and the country in accordance with the law.


          Most people working for Chinese projects in Syria back home

          Minister of Commerce Chen Deming said Wednesday that most people working for Chinese projects in Syria have already evacuated from the violence-torn country.
          Some 100 are staying there to look after their money, equipment, and projects, Chen said.
          "We will come back to those projects when the situation there is stable and favorable for peaceful development," Chen said.
          The Chinese embassy and companies have cut the number of their personnel since Syria has been gripped with domestic violence since last March.


          China asks Libya to compensate for companies' losses

          Minister of Commerce Chen Deming said Wednesday China has requested Libya to compensate Chinese firms that suffered losses during the country's civil war.
          Speaking at a press conference on the sidelines of the annual parliamentary session, Chen said that according to international law and practise, China requires the Libyan authorities to properly handle the issue of Chinese firms' heavy losses in Libya's civil war and give compensation to these firms. Chen added that China has no investment in Libya, but only construction projects, particularly the civil housing projects worth more than 10 billion U.S. dollars. These projects, already completed or close to completion, were under artillery attack and suffered heavy losses during the war.
          Chen said according to an evaluation by a group including officials from the ministry and some entrepreneurs that had been sent to Libya recently, Chinese firms cannot go back to the country at the moment for security reasons.
          He promised to return to the projects if the security situation meet requirements.
          After large-scale anti-Gaddafi protests broke out in February last year, China safely evacuated almost all its nationals, most of them construction workers and engineers, more than 35,000 in total.
          Chen said the construction sites are now being protected only by a few Chinese nationals. However, most of the sites are guarded by local residents.
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          Beijing time: 2021/05/09/2PM
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