What　will　China　bring　to　the　globalization　of　economy?　Even　for　a　country　of　1.2　billion　population　and　960　square　kilometers，　there　is　no　unlimited　supply　of　cheap　labor　or　unlimited　tolerance　of　environment　pollution.　However，　the　demand　of　the　1.2　billion　population　market　in　a　fast－growing　economy　could　be　the　powerful　engine　of　the　global　economy　in　human　history.　Some　of　Chinese　key　officials　and　scholars　has　turned　to　pro－deficit　attitude　on　this　debate　and　more　and　more　people　realize　that　China　has　no　responsibility　to　supply　the　world　with　cheap　goods　while　the　living　standard　of　Chinese　people　are　below　average　level.　While　those　booming　Chinese　companies　have　shown　their　appetites　for　raw　materials　on　the　global　market，　the　extravagance　of　Chinese　wealthy　family　in　cities　has　given　hopes　to　global　manufacturers.

    Most　of　the　pressure　to　grow　imports　comes　from　China’s　trade　partners，　especially　US　and　Japan.　A　strong　wind　calling　for　the　revaluation　of　RMB　has　been　blowing　since　the　beginning　of　2003，　and　some　even　criticize　China　as　an　exporter　of　deflation.　At　the　same　time，　huge　amounts　of　hot　money　flow　into　China　despite　capital　controls　that　strictly　limit　money　flows　into　this　country.　Chinese　officials　have　openly　refused　to　revaluate　RMB　under　pressure　and　some　even　say　that　its　a　conspiracy　to　sacrifice　China’s　economy　without　bringing　benefits　to　the　global　economy.　But　those　strong　words　against　the　revaluation　of　RMB　were　more　or　less　for　internal　politics.　The　government　then　began　to　boost　the　imports　to　ease　the　pressure　on　the　currency.

    Domestically，　there　are　more　and　more　criticisms　against　the　stimulating－export　policies，　especially　the　tax　reimbursement　policy.　The　tax　reimbursement　to　exporters　has　aggravated　the　fiscal　deficit　of　the　central　government.　The　government　has　paid　125　billion　RMB　and　115　billion　RMB　for　tax　reimbursement.　This　appropriation　was　far　from　the　amount　incurred　every　year　and　up　to　the　end　of　2003，　the　tax　reimbursement　in　arrears　reached　to　340　billion　RMB　（＄41.06　billion）.　The　profit　margin　rates　of　many　exporters　are　below　the　reimbursement　rate.　As　the　default　of　payment　accumulated　year－by－year，　some　exporters　have　fallen　into　liquidity　problem　while　waiting　for　the　payment　of　tax　reimbursement　in　arrears.

    So　China　should　not　be　afraid　to　become　red　in　trade，　like　it　has　during　many　periods　of　greatness.　If　the　dragon　becomes　be　red　for　years　or　even　decades，　the　most　foreseeable　consequence　is　that　RMB　will　be　an　international　currency.　To　support　an　international　currency，　China　should　build　‘a　stable　macroeconomic　environment，　an　efficient　market　mechanism　and　a　healthy　banking　system’　as　Chinese　Premier　Wen　Jiabao　mentioned　as　the　preconditions　for　a　revaluation　of　RMB.　It　is　easy　to　say　what’s　good　but　it　is　difficult　to　identify　the　problems　and　solve　them.　When　the　growth　is　still　enough　to　sustain　the　system，　who　will　be　brave　enough　to　cut　the　mess　behind　the　rise?　China　should　not　be　afraid　to　become　red　again.