MercoPress. South Atlantic News Agency

China announces plans to overhaul export policies

China's state media announced Wednesday the country's authorities are planning an overhaul of policies favouring the export sector in an effort to rein in its huge trade surplus and reduce tensions with major trading partners.

The government will gradually shift away from its former strategy of actively encouraging exports, the China Business News said, citing Wang Shouwen, head of the foreign trade department of the Commerce Ministry. Wang made the remarks at a conference which analysed possible international trade disputes in 2007. The government has already started to overhaul various export subsidies, terminating those banned by the World Trade Organisation and reassessing others that could attract legal challenges, the report said. Apparently Beijing as of next April 15 will be cutting export tax rebates on 76 additional categories, including steel products, and scrap rebates on another 83 categories. The decision is expected to show results in the medium or long term. A plan to promote imports is also being drafted. Wang made the comments following on United States formal lodging of two complaints at the World Trade Organisation on copyright violations in China and market access for films, music and books. There is growing pressure on Washington to address its huge trade deficit with China, which hit more than 200 billion US dollars last year. Under WTO rules, the two parties have up to 60 days to hold consultations. If they still fail to solve the problem, the appealing side could request a WTO panel to judge the case. Wang said the Chinese government has made massive efforts to strengthen Intellectual Property Rights, IPR, protection and made remarkable progress. "The country established a specified panel for IPR protection involving 17 ministries and government agencies", he was quoted adding that the IPR protection action plan of 2006 covered 160 projects while that for 2007 covers 280. However "conflicts are unavoidable in trade relations but we should choose the method to solve them" underlined Wang.