Ministry of Commerce: keep import & export policies unchanged and encourage overseas merge & acquisition

Currently, the foreign trade dependency of China exceeds 2/3 of its trade structure and the national foreign export policy will not experience considerable change. The restriction on the export of some low-end products will continue to be eased and Chinese enterprises are encouraged to accelerate overseas merge & acquisition by taking advantage of subprime lending crisis and RMB appreciation.

On April 26, 2008, Fu Ziying, Deputy Minister of the Ministry of Commerce, stated at China Import & Export Enterprises 6th Annual Conference, that presently the foreign trade dependency of China exceeded 2/3 of its trade structure and the national foreign export policy focusing on steady growth would not experience considerable change. He further pointed out that under rigorous export situation, the national import enhancing policy should keep unchanged, which was attributed to our great pressure of international disequilibrium of balance of payment and the need to ensure good economic development. Zhang Xiaoqiang, Deputy Director of National Development and Reform Commission, also pointed out that the role played by import in stabilizing market should be brought into full play in the future, the import of raw materials, energy as well as the key components and technologies of hi-tech products should be particularly enhanced and the cost of import should be reduced as low as possible so as to curb market price.

Zhang Xiaoqiang pointed out at the Conference that China should not have the fear of encouraging exporters since the demand from America, EU and Japan eased. "You may worry about trade friction last year," he said, "but the paramount task may become how to help enterprises survive if you worry too much about how to reduce bankruptcy now." Li Ling, Director of Import and Export Fair Trade Bureau, pointed out at the Conference that China would possibly become the target of many complaints because of the slowdown of global trade. In this year the increase of global economy slowed down, in some countries trade protectionism may rise and the expected continuous robust export growth of China may trigger other countries' countervailing, anti-dumping and safeguard measures against China.

According to the latest statistics, the textile export of China to America has experienced decrease for five months consecutively due to the influence of subprime lending crisis.

Fu Ziying, Deputy Minister of the Ministry of Commerce, enumerated the practices of German and Japanese enterprises and encouraged Chinese enterprises to accelerate overseas merge & acquisition by taking advantage of subprime lending crisis and RMB appreciation.

At China Import & Export Enterprises 6th Annual Conference, Fu Ziying stated that the fluidity of American financial market was restricted and some private enterprises and institutions sank into temporary predicament due to subprime lending crisis, which provided us with a golden opportunity of merge & acquisition. "These enterprises own celebrated brands, powerful international marketing network and strong research & development capability. We can possess these advantageous resources and promote domestic enterprises to elevate international competitiveness if we manage to accomplish proper merges and acquisitions." Fu Ziying said.