China aims for boosted exports, rules-setting sway

Chinese leaders and economists have said China must up its game to boost export growth against the backdrop of an anemic global economic recovery.

SIX-PERCENT GROWTH

Commerce Minister Gao Hucheng said on Saturday that China is confident of meeting its new lowered annual target of increasing foreign trade by around 6 percent.

Even with the target lowered, however, the toughness of this task is illustrated by the fact that China's imports and exports denominated in yuan rose by a mere 2.3 percent in 2014, falling short of the target of around 7.5 percent.

It was the third consecutive year that China has failed to deliver its foreign trade growth target.

"The domestic and foreign trade environments this year have not improved markedly. To fulfill the foreign trade growth target, efforts should be made to implement existing policies," Gao said at a press conference on the sidelines of the ongoing annual parliamentary session.

But he also stressed that a multi-pronged strategy must be adopted: the country should strengthen support for businesses in the process of industrial upgrading, produce higher-value products, focus on innovation-driven competitiveness and encourage the development of new export models like e-commerce.

Gao's view was echoed by his predecessor Chen Deming, who said "to achieve this goal will be an uphill battle and great efforts must be made."

Bai Ming, a trade expert with the Ministry of Commerce, warned, "Chinese businesses cannot rely on yuan depreciation to get a bigger market share. They have to work on industrial upgrading and new export models."

As the world's largest trading nation in goods, China's share of the global market climbed to 12.2 percent last year from 11.7 percent in 2013, Gao noted. However, global trade growth has eased pace in recent years.

The International Monetary Fund (IMF) predicted earlier this year that the global trade volume would edge up 3.8 percent in 2015, only marginally higher than the 3.5-percent forecasted global economic growth rate for this year.

"We should not expect China's exports to jump this year amid a sub-par global economic recovery, while imports this year may surge. But if China can use its huge foreign exchange reserves to purchase advanced equipment, it can help bolster economic growth and improve the country's global competitiveness," said Liu Zhibiao, an economist with Nanjing University.

GREATER SWAY IN SETTING RULES

In addition to buttressing exports, one of the three engines of a nation's economic growth, China is also aiming to take a more active part in setting investment and trade rules.

Gao said that China and the United States have "basically completed" negotiation on their widely-scrutinized bilateral investment treaty (BIT), which "will have significant implications for global investment rules".

China is also pressing ahead in negotiations over similar treaties with the new European Union (EU) leadership. Gao revealed that the Chinese side has recently received a written proposal from the EU, and that it is busy translating and evaluating before responding.

"The China-U.S. BIT is of particular importance, as it means both countries are mapping out investment rules together and China is providing vitality to the changing world economic and trade landscape," said Zhou Hanmin, an international law expert.

China will accelerate talks over free trade areas with Japan and the Republic of Korea, built on the newly-signed China-ROK free trade agreement (FTA). The country also eyes wrapping up talks for an updated version of its proposed free trade zone with ASEAN countries by the end of 2015, according to Gao.

"We are endeavoring to build a high-standard FTA network globally," the minister said.

China's efforts are testimony to its resolve to climb the global value ladder and tap into development opportunities in the new round of economic globalization, said Liu.