China’s Minister of Commerce, Bo Xilai, says China is likely to become the world’s top exporting nation by the end of this year – surpassing the US and Germany. But he also says China must keep its trade surplus within healthy levels.

The Commerce Minister says China’s total overseas trade volume increased by over 20 percent during the past year. In the same year, the country’s trade surplus reached a record high of more than 177 billion US dollars. He says the strong growth will continue this year.

Bo Xilai said “By the end of this year, China’s exporting volume is likely to exceed that of the US and Germany, thus becoming the world’s top exporter. China’s imports and total trade volume are also set to replace Germany’s No.2 world ranking.”

But the minister says an excessive trade surplus… is detrimental to both the domestic economy and overseas trade relations. Bo Xilai says reducing the trade surplus is the “top priority” this year. “Indeed, China’s exports are much larger than its imports. And the country’s trade frictions with its partners are increasing. In order to maintain the international trade balance, we should also maintain our trade surplus within a healthy level. The reduction is necessary.” He added.

Bo Xilai says China’s southeastern coastal region generates 95 percent of China’s trade surplus. And the area’s manufacturing sector has been a driving force in pushing the surplus higher. He says reducing the excessive surplus will promote domestic consumption. And also reduce the country’s economic reliance on exports.

 

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