4. To Reduce Trade Frictions

Because Chinese foreign trade scale grows rapidly and trade surplus of China continues, there are increasing trade frictions between China and its trade partners. Handling trade frictions with trade partners appropriately has a great influence on Chinese foreign trade and economic growth. It is unreasonable for china to restrain exports to pursue trade balance and reduce trade frictions. In order to reduce trade frictions with trade partners, we think China can take some measures as: encouraging imports instead of reducing exports, encouraging OFDI (outward foreign direct investment) of Chinese enterprises and exporting parts and components to host countries, asking for more imports of high-tech products from the U.S. and the European Union, and encouraging exports of high-tech products with intellectual property rights.