Bank of America Merrill Lynch, an investment bank, said on Tuesday that China needs to adjust its import and export scale to $120 billion a year in the coming years to reduce its trade surplus with the United States, which has the greatest impact on China's telecommunications equipment, technology, automotive and petrochemical industries.
In his comments, Cui Wei, a strategist at Bank of America Merrill Lynch, pointed out that China is willing to make the greatest concessions in trade surplus on the four major issues of Sino-US trade negotiations: trade balance, market access, technology transfer and industry policy. It is estimated that China may reduce its exports to the United States by about 30 billion US dollars a year and increase its imports by 90 billion US dollars in a few years.
"Overall, reducing the trade surplus has the greatest impact on China's local telecommunications equipment, technology, automotive and petrochemical industries, which have expanded their capacity substantially in recent years to meet strong domestic and foreign demand." He said.
On the import side, Bank of America Merrill Lynch expects China to increase its purchases of oil and natural gas, petrochemical, automobiles, soybeans and high-tech products such as aircraft, medicine and power equipment. China may invest in infrastructure projects in the United States to help export its energy, petrochemical and agricultural products.
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