China will import more big ticket items and luxury goods this year to avoid a costly trade war, but will not curb its own exports, predicted a former Chinese trade official in an interview with Reuters. Tensions between China and its trade partners over issues from solar panel subsidies to airline emissions fees have intensified recently as the global economy slows, and U.S. politicians sharpen their rhetoric ahead of a presidential election later this year. Earlier this week, U.S. President Barack Obama signed an executive order creating a new government team to enforce trade rules, a step widely seen as aimed at China, and senior lawmakers want to push a bill that would allow the U.S. to impose duties on subsidised Chinese goods. China has largely remained quiet about the Obama administration's move to create the 50-60 person trade unit, suggesting its leaders hope to avoid a loud dispute with the United States in a year when China goes through its own sensitive leadership transition. As for Europe, Wei said China should cut import duties to encourage more purchases by China's affluent consumers, who enthusiastically buy Louis Vuitton handbags and Italian suits. It is also the biggest target for anti-dumping charges. Those cases increasingly come from emerging markets like India and Brazil, China's key export markets for the future. -- SPA
