China set to boost international trade

China's trade policies will become more open to boost its imports and exports in 2013, despite being set to miss the trade target for last year, according to a senior official at a top government think tank.

China is losing some advantages, such as low labor costs, but future reforms will strengthen its competitiveness, said Wei Jianguo, secretary-general of the China Center for International Economic Exchanges.

"It's expected that overall reform, ranging from the tax and fiscal system to the function of the government, will be accelerated in this year," said Wei.

First, it should further cut import duties on more consumer goods, he said.

The Ministry of Finance has announced that from January 2013, 784 imported products will enjoy lower import duties as part of a major effort to boost domestic consumption.

The temporary adjustment will allow the products, grouped into five major categories, to be imported on a tax rate that is lower than the most-favored-nation tariff.

But Wei said such efforts lack variety, scale and scope.

"As a responsible country, China needs to increase its imports, which is important in building healthy bilateral trade and reducing trade friction," Wei said.

In the first 11 months of 2012, China's exports grew 7.3 percent from a year earlier, while imports grew 4.1 percent, according to the Ministry of Commerce.

China's exports may grow 8 percent next year while imports may rise 7.8 percent, according to a report published by the State Information Center in December last year.

Wei said he believes China will adopt a more proactive attitude in multilateral and bilateral trade negotiations.

"It has become a trend that countries are trying to abandon the multilateral framework and step up efforts in strengthening bilateral mechanisms," he said.

A free-trade agreement between the United States and South Korea took effect in 2012, with agreement on eliminating 95 percent of each nation's tariffs on goods within five years.

The European Union has completed final negotiations on a free-trade agreement with Singapore.

Under such circumstances, as a key Asian trading partner, China also needs to step up negotiations, and could consider establishing a free-trade agreement with the US, Wei said. The US replaced the EU as China's biggest trading partner in 2012.