China is willing to be “the market of the world”

Davos. China has never deliberately sought a trade surplus and is willing to be “the world’s market,” Vice Premier He Lifeng said at the World Economic Forum (WEF) yesterday, after the manufacturing giant achieved a record surplus that further unsettled its trading partners.

China is willing to take advantage of its colossal market and expand imports “more vigorously,” He said at the WEF annual meeting in Davos.

“We are not only willing to be the world’s factory, but also, and with greater determination, to be the world’s market,” he stated.

Last year, demand for Chinese-made goods helped the world’s second-largest economy weather the challenges of U.S. President Donald Trump’s trade policies and weak domestic sales.

However, China’s dependence on exports has created excess production capacity and exposed it to possible retaliation from countries seeking to protect their own manufacturing sectors.

He led the Chinese government delegation in Davos, where several heads of state, including Trump, and senior executives from the technology and financial sectors, are part of the 2,900 delegates.

“The unilateral practices and trade agreements of some countries clearly violated the basic principles and rules of the World Trade Organization, seriously undermining the international economic and trade order,” he declared.

Comply with soy purchase

China has bought about 12 million metric tons of soybeans from the United States, fulfilling its promise to Washington to acquire that volume before the end of February, three traders told Reuters.

As buyers shunned U.S. supplies amid the trade war, China saw no imports from the United States for four consecutive months since September, reducing U.S. market share from 21 percent to 15 percent.

However, the 12 million metric ton target was met last week, with bulk purchases made by state collector Sinograin and state trader Cofco, which were the only buyers of US soybeans, as private mills continue to favor cheaper supplies from Argentina and Brazil.