China's trade imbalances aren't just about its industrial overcapacity,said Peking University’s National School of Development dean,who advises the central bank. Global economic shifts share blame,he emphasized Tuesday . “The reason why our imbalance is becoming a bigger problem is that rest of the world is having a bigger problem in adjusting the economic structure,” he stated.
Huang noted China has made progress on its external imbalances. But challenges remain. Country's current-account surplus has shrunk from nearly 10% of GDP in 2007 to about 3.7% now. Yet,consumption in China still trails global norms,pointing to urgent need to boost domestic demand.
He urged global economies to collaborate on these structural issues . “How to work together with the rest of the world is challenge we face,not just by China,but also by other economic partners,” Huang said. His remarks come as nations wrestle with adapting to fast-changing global economic realities…
