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Follow us on TWITTER: twitter.com Like us on FACEBOOK: www.facebook.com China’s General Administration of Customs’ (Customs) latest data showed China’s exports in April reached 5.69 billion, while import data remained weak. Experts point out that China’s strong exports are due to its subsidy policy. In essence, China is subsidizing foreign consumers, which could cause future economic problems for China. Customs’ data released on May 10, showed April’s export of 5.69 billion hit a new high, with a .42 billion trade surplus—far more than the .1 billion trade surplus of the first quarter. However, this data is different from what the Minister of Commerce Chen Deming recently stated. During the US-China Strategic & Economic Dialogue, Chen stated: “From a trade perspective, the fears and doubts of the West, regarding the Chinese yuan, is ungrounded. In the past 3 years, China’s trade surplus has reduced.” Economist Cheng Xiaonong thinks that China’s strong export data is due to its tax rebate policy, causing exported products to be more expensive in China, than overseas. Economist Cheng Xiaonong: “The prices of many exported products were lowered to the point that a lot of businesses didn’t earn a profit, while others businesses even lost money. How does the Chinese government continue to export? They provide about 10% in tax rebates, and that is the profit earned by these businesses.” Cheng Xiaonong pointed out: There are no export tax rebates when the same …
With only two US export control officers in all of China, Rep. Royce warns of lax export control measures and points to China’s continued efforts to target US technology at today’s Foreign Affairs Committee hearing on reforming export control.
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