China Seeks to Boost Imports of Advanced Technology

China’s push for more imports will place the main focus on advanced technology, equipment and key components while also seeking to boost imports of resources and raw materials, according to guidelines posted on the State Council’s website.

The government aims to stabilize exports and boost imports to promote more balanced and sustainable international trade growth. Boosting imports for a more balanced development of foreign trade will ease domestic pressures on resources and the environment, accelerate scientific and technological innovation, improve people’s consumption and reduce trade frictions, said the guideline.

The 18-clause guidelines also noted that imports of consumer goods will also be increased “appropriately”.

China is already the world’s second-largest importer, just behind the United States. In 2009 it passed Germany as the world’s top exporter. In 2011 its overall foreign trade jumped 22.5%, with total imports and exports hitting $3.64 trillion. This year Beijing is targeting a 10% trade growth.

In the first quarter China’s trade surplus was a relatively modest $670-million as imports hit $160.31 billion, according to customs data. China’s total trade for the quarter rose 7.3% from a year ago to $859.37 billion. That is the slowest pace of growth since the fourth quarter of 2009.

The guidelines call for China to lower import tariffs for some resources and raw materials and “appropriately” bring down import tariffs for some goods “closely linked with daily life.”

The guidelines also call for adjustment to be made to import duties on some advanced technology and equipment and key components at an appropriate time. China will continue to accord duty-free treatment to imports from least-developed countries and widen the duty-free treatment to more goods.

The guideline also pledged as further import-boosting measures diversified financial stimulii like credit support, financing facilitation, commercial insurance and cross-border trade settlement in yuan.

China’s foreign trade this year faces thwarted global demand, rising costs at home and a harsh trading environment, according to a warning issued Friday by the Ministry of Commerce.

China’s trade will continue to grow at a slow pace in the second quarter after trade growth slowed for a second consecutive quarter in the January-March period, said the report.