China will soon allow domestic companies to freely import a wide range of materials and products, in a move to achieve trade balance.

From April 1, Chinese firms will no longer need to apply for an import license to import products in 338 categories, the foreign trade department of the commerce ministry said on its website yesterday.

Steel products, plastic materials as well as some machinery and electronics products are included in the list.

Chinese traders need to get an "automatic import license" for these products, meaning they do not need to get official approval but their imports will have to be recorded at the ministry.

"The move is aimed at promoting the balanced development of China's foreign trade by simplifying import administration and facilitating trade," the trade department said.

The relaxation of import licensing marks the latest attempt by the ministry to help rebalance the country's imports and exports.

"It's one of the substantial measures the commerce ministry makes this year to facilitate imports," said an official who asked not to be named.

To prevent the trade surplus from widening, the government has taken a series of measures to encourage imports and restructure exports.

From late last year, China began to scrap or lower the export tax rebate rates on some energy-intensive and polluting products.

In April, the country will also open an imports section at the Canton Fair, China's largest trade event.

Despite these efforts by the government, China still saw its trade surplus triple to $39.64 billion in the first two months of this year.

Vice-Minister of Commerce Gao Hucheng on Monday said the impact of the measures to cut the trade surplus will show later. "I think things will change in the coming months as import-encouraging and trade-facilitating measures take effect," he said.

He added that it's impossible to achieve an absolute balance in trade in the coming years because of the country's huge trade figures.

He noted that although China has a mounting trade surplus with some economies, such as the United States and the European Union, domestic firms don't profit as much since most of it is taken by foreign investors.

Chinese top officials stress China is not pursuing a strategy of trade surplus. Instead, the country is striving to improve the quality of its exports to upgrade its foreign trade structure.

Source: China Daily