Beijing, China, 21 June – China said Wednesday it would reduce export incentives for thousands of products in order to reduce its foreign trade surplus, with analysts predicting a rise in prices for foreign consumers.
From July 1, Beijing will reduce or bring an end to incentives to export over 2,800 products such as toys, cement and fertilizer, the Chinese Finance Ministry said in a statement published on its webpage.
With this measure, the authorities aim to reduce the excessive growth of exports, reduce friction with trading partners and control industries that consume high amounts of energy, the Ministry said.
If it continues to grow at the same rate – ten-fold that of 2004 – China’s trade surplus this year will reach US$320 billion, according to analysts.
The unequal balance of trade has already led the European Union and the United States to introduce tariffs and other measures to try to reduce the trade deficit with China.
Washington has also accused Beijing if keeping the yuan at artificially low levels to increase the competitive advantage of its products in international markets. (macauhub)