A former advisor to the People's Bank of China stated that China's foreign trade strategy needs to undergo significant adjustments in the next five years, increasing imports on a larger scale to balance foreign trade. This measure will also help enhance the global use of the renminbi.

According to Bloomberg on Tuesday (December 9th), Liu Shijin, former deputy director of the Development Research Center of the State Council of China and former member of the Monetary Policy Committee of the People's Bank of China, stated in a speech last week that it is necessary to achieve a basic balance between imports and exports.

He said that China's trade surplus last year was about 1 trillion US dollars (about 1.3 trillion Singapore dollars). If China can increase the import of goods and services of the same amount on a considerable scale and pay in RMB, it will significantly improve the liquidity of offshore RMB.

He added that promoting the appreciation of the renminbi within a reasonable range will also contribute to currency internationalization. This will enhance the purchasing power of Chinese residents overseas and drive consumption.

Bloomberg reported that Liu Shijin's views do not represent official policies, but also reflect the increasing pressure from the international community for China to rebalance trade. The latest warning comes from French President Macron. In an interview with the French newspaper Les Echos on Sunday (December 7th), Macron said, "I am trying to explain to the Chinese side that their trade surplus is unsustainable because they are harming their customers, especially since they have almost stopped importing anything from us

He said that if Beijing cannot solve the trade imbalance problem, the EU may be forced to take "strong measures" against China, including the possibility of imposing tariffs.

Beijing has promised to boost domestic consumption in the next five years to reduce dependence on exports. The Politburo of the Communist Party of China held a meeting on Monday (December 8th) and rarely proposed the idea of "better coordinating domestic economic work and international economic and trade struggles".

A former advisor to the People's Bank of China stated that China's foreign trade strategy needs to undergo significant adjustments in the next five years, increasing imports on a larger scale to balance foreign trade. This measure will also help enhance the global use of the renminbi.

According to Bloomberg on Tuesday (December 9th), Liu Shijin, former deputy director of the Development Research Center of the State Council of China and former member of the Monetary Policy Committee of the People's Bank of China, stated in a speech last week that it is necessary to achieve a basic balance between imports and exports.

He said that China's trade surplus last year was about 1 trillion US dollars (about 1.3 trillion Singapore dollars). If China can increase the import of goods and services of the same amount on a considerable scale and pay in RMB, it will significantly improve the liquidity of offshore RMB.

He added that promoting the appreciation of the renminbi within a reasonable range will also contribute to currency internationalization. This will enhance the purchasing power of Chinese residents overseas and drive consumption.

Bloomberg reported that Liu Shijin's views do not represent official policies, but also reflect the increasing pressure from the international community for China to rebalance trade. The latest warning comes from French President Macron. In an interview with the French newspaper Les Echos on Sunday (December 7th), Macron said, "I am trying to explain to the Chinese side that their trade surplus is unsustainable because they are harming their customers, especially since they have almost stopped importing anything from us

He said that if Beijing cannot solve the trade imbalance problem, the EU may be forced to take "strong measures" against China, including the possibility of imposing tariffs.

Beijing has promised to boost domestic consumption in the next five years to reduce dependence on exports. The Politburo of the Communist Party of China held a meeting on Monday (December 8th) and rarely proposed the idea of "better coordinating domestic economic work and international economic and trade struggles".