China's big trade surplus caused by income disparity

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BEIJING, July 19 (CEIS): The disparity of income distribution has caused big trade surplus, said Qiu Xiaoping, Director of Labour and Salary Department of Labour and Social Security Ministry.
Qiu said that, in a long run, the lift of employees' wages may help push forward the adjustment of the structure of enterprises and technical upgrading, and will be good for changing the way of economic growth and reducing trade surplus.
For a long period of time, China's advantage in low-cost labour resources had played an important role in China's continued economic growth.
However, under the situation of China's deepening of economic structural adjustment and the globalisation of the world's economy, low wage will widen income gap of Chinese people and dampen consumption.
Experts suggested that the Chinese government should increase employees' wages and expand domestic demand especially the consumption demand of residents to gradually change the mode of the economic growth of depending on investment and export.