China will expand imports initiatively & Experts say there are three major benefits

The Boao Forum for Asia 2018 Annual Conference opened in Boao, Hainan Province on Apr 10th,2018. President Xi Jinping proposed a series of new measures to expand China's opening market, including actively expanding imports. We will reduce vehicle import tariffs relatively and reduce import tariffs on some other products this year. We strive to increase the import the people’s needs concentrated products and accelerate the process of joining the World Trade Organization’s “Government Procurement Agreement”.

Chief Executive Officer of China Bank of Hong Kong, Mr. E Zhixi, told the "Securities Daily" reporter yesterday that "China's promotion of import and promotion of balanced development of trade is of great significance for the construction of a modern economic system." On the one hand, the promotion of imports can achieve a balanced development of foreign trade. To meet the growing domestic consumer, improve the life quality of domestic residents, and improve everyone's sense of acquisition.On the other hand, increasing imports can bring competitive pressures on domestic related industries. The survival of the fittest can promote Chinese enterprises to improve product quality and strengthen innovation and it will ultimately promote domestic industrial upgrading. Finally, lowering tariffs can provide domestic consumers with more quality choices to meet people’s needs for a better life.

So, how should China expand imports? Huang Zhilong stated that China can take the following two measures. First, to reduce tariff barriers and non-tariff barriers, so that overseas goods and domestic goods face a relatively equal competitive environment.Second,Promote structural reform on the supply side, eliminate outdated and inefficient production capacity, and import more low-price & high-quality products or resources to replace domestic backward production capacity.

In fact, this year's government work report put forward that it is necessary to expand the opening up of telecommunications, medical care, education, and pensions, and lower import tariffs on automobiles and some daily consumer goods.

E Zhixi believes that the import of products in the service sector should be increased and the process of opening Chinese service industry should be accelerated in the future. We can consider promoting the full implementation of the pre-entry pre-admission national treatment plus negative list management model in the service industry, relaxing the barriers to foreign investment in the service industry, and simplifying procedures for the establishment and change of foreign-funded enterprises. In addition, the business environment should be further optimized to shorten the registration and registration time of foreign-funded enterprises. Finally, we can gradually establish a service trade facilitation mechanism, continue to improve the effectiveness of customs clearance, and pay attention to the introduction of international innovation achievements.