China vows to boost imports

BEIJING yesterday unveiled guidelines aimed at boosting imports, just days ahead of a key meeting with the United States expected to address China's politically sensitive trade surplus.

The powerful State Council, or cabinet, said China would "appropriately" increase the scale of imports to encourage more balanced trade and reduce trade friction, according to a document posted on the central government website.

China would boost imports of hi-tech equipment, key components and energy products, said the document.

China's massive trade surplus with the United States is controversial and US officials have long accused Beijing of keeping the value of its currency artificially low to boost exports.

The two countries will hold talks on Thursday and Friday expected to address a range of issues, including complaints about China's trade practices.

They have a number of outstanding trade disputes, including accusations by US companies that Chinese firms are dumping solar products in the American market.

The US trade deficit with China reached a record high of more than US$295 billion in 2011, according to US figures.

China defends its exchange rate regime, saying it is moving gradually to make its currency more flexible.

Earlier this month, China loosened some controls over the yuan by allowing a broader trading band. AFP