On Wednesday, a promise was issued by leaders from the Chinese government to increase their importing capacity and reduce the risks involved in their financial system. This commitment has come at a time when China is having a lot of pressure from the European Union and the United States to have its markets opened up. The statement which did not include any new incentives, was made after a planning meeting that took three days. The meeting took place in conformity with the plans of the ruling Communists Party to promote efficiency in the economy which accelerates the booming manufacturing industry.
The Central Economic Work conference is a reminder of the era of central planning in the People’s Republic of China. Central planning is a key pillar in the development of the set goals for the economy that is majorly state dominated. The statement promised that the state would commit to increasing its importation capacity in a bid to promote the growth of the economy which is majorly driven by the spending of the consumers. This will, in turn, reduce China’s reliance on investment and trade.
The statement was mum about the changes planned by the Chinese government to respond to claims by the European Union and the United States that they were left out in a broad range of industries. A Xinhua News Agency official said that China vows to cut on import tariffs for some commodities and increase their importing capacity to boost a balance in trade. In November, the Chinese government announced that it would cut taxes for specific products including mineral water, avocados and infant carriages in what it said was an effort to diversify the choices for domestic production.
The statement issued during the Wednesday press briefing also promised that the Chinese government would apply measures to curb surplus production from the country’s extensive industrial base. This was in a bid to soften the straining ties with the European Union and the United States. The US and the EU complain that China is flooding the market with cheap and low-quality aluminum and steel which is lowering down the global prices for the commodities and threatening millions of jobs around the world.
The United States has responded to the commerce move by China by hiking the import duties of some Chinese products. There are multi-year efforts by the ruling Communists Party to reduce the size of Chinese coal and steel industries. However, there was no indication from the statement of the industries that would be next in line.