Will imports undermine China’s economic security?

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01:28

The China International Import Expo (CIIE) has wrapped up in Shanghai. As the first exhibition of its kind, the CIIE has attracted more than 3,600 companies from over 130 countries and regions.

With the slogan "New Era, Shared Future", the expo not only aims to give firm support to trade liberalization and economic globalization but also to open the Chinese market even further. And in the expo, Chinese President Xi Jinping reaffirmed “the doors of China's opening up will never shut, but will only open wider”.

Among the applause, however, concerns have also arisen. Skeptics worry that the expo too heavily promotes China's emphasis on imports, which might undermine its economic security.

Nevertheless, Li Yong, Director General of the United Nations Industrial Development Organization (UNIDO) doesn't support the view. He shared a very positive view of the expo during his interview with CGTN's The Point.

The first CIIE is held in Shanghai from November 5 to 10, 2018. /VCG Photo

According to Li, if a country can open its market freely, it can certainly balance its imports and exports. China's decades of economic performance has already proved that.

China has long had a trade surplus and too much of it is not helpful for the country. According to the General Administration of Customs, China's exports reached 15.33 trillion yuan (2.2 trillion US dollars) while imports amounted to 12.46 trillion yuan (1.79 trillion US dollars) in 2017.

Although the trade surplus continued to narrow in 2017, shrinking 14.2 percent to 2.87 trillion yuan (410 billion US dollars), compared with 3.35 trillion yuan (480 billion US dollars) in trade surplus in 2016, the total amount of last year was still high.

/VCG Photo

The second point he offered is that import should not be just about importing raw materials, but also high and advanced technology.

“With these kinds of imports, we'll see people's living standards will rise… At the same time, high technologies could be imported into the country and become a kind of push or pressure for domestic companies to be more active about innovation,” Li added.

The UNIDO jointly organized the CIIE. Dedicated to promoting Inclusive and Sustainable Industrial Development, especially in developing economies, UNIDO has a long history of cooperation with China ever since China was recognized as a member of the Organization in 1972.

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