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China Announces Measures to Prop up Exports amid Slowing Growth

09-13 13:33 Caijing
China’s imports dropped 2.6 percent year-on-year in August, while the exports grew 2.7 percent year-on-year, below the expectation of 3 percent, raising worries of weakening demands both domestic and abroad

China’s cabinet, the State Council announced a package of measures including tax rebates Wednesday to support slowing exports growth amid weakening demands.

The government will pay back export tax rebates faster and grant more loans to exporters, as well as increase export credit insurance to small companies, according to a statement following a  regular State Council meeting presided by the Premier.

Administrative procedures, such as those concerning inspection and quarantine, will be optimized and related costs will be reduced starting next year in order to improve efficiency during customs clearance, the statement said.

The statement added that the government will encourage imports, particularly of machinery and technology, to help balance trade.

However, former vice minister of Commerce Wei Jianguo said the target of a 10% exports growth for the whole year remains tough to meet since it will take at least three-to-five months for those measures to work.

China’s imports dropped 2.6 percent year-on-year in August, while the exports grew 2.7 percent year-on-year, below the expectation of 3 percent, raising worries of weakening demands both domestic and abroad.

Chinese Premier Wen Jiabao last month urged extra measures to stabilize exports growth and help meet this year’s economic targets of which the GDP growth was cut to around 7.5%.

China’s GDP growth dropped to 7.6% in the second quarter this year, from 9.5% in the same period of last year.

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