China's State Council rolls out more policy to boost exports
www.chinaview.cn 2009-05-27 20:00:27   Print
°§State Council announced Wednesday further support policies to help exporters.
°§China will keep the yuan "basically stable" at a "reasonable and balanced" level.
°§Coordinated efforts are urged in expanding domestic demand and stabilizing exports.

   BEIJING, May 27 (Xinhua) -- China's State Council announced Wednesday further support policies, including expanded export credit insurance, tax breaks and more financial access, to help exporters.

This file photo shows the launch of the Jan Van Cent, a 12,000-tonnage multi-purposed oceangoing freight ship for an export order to the Netherlands, is held at the Yichang Shipyard, in Yichang, central China's Hubei Province, May 9, 2009. (Xinhua Photo)
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    An executive meeting of the State Council, or Cabinet, also said the country would keep the yuan "basically stable" at a "reasonable and balanced" level to help exporters avoid exchange risks.

    The meeting was presided over by Premier Wen Jiabao.

    The government will provide 84 billion U.S. dollars worth of short-term export credit insurance to trading companies to help increase exports.

    Preferential policies and tax breaks will mainly go to labor-intensive and high-tech industries to protect world market share.

    Smaller companies would get more financing guarantees from financial institutions, as the government promised to allocate unspecified extra funding from the central budget.

    Shrinking external demand that lead to export declines would remain "the biggest difficulty" facing the economy, participants to the meeting agreed.

    They also called for coordinated efforts in expanding domestic demand and stabilizing exports, so as to reduce the impact of global financial crisis on China's foreign trade to the minimum.

    China raised export rebates on some products after exports shrank on weakening overseas demand since the second half of 2008. For example, the government raised the tax rebate rate for textiles five times since August, most recently last month when the rate went from 15 percent to 16 percent. 

Domestic demand expansion urged in four sectors as exports falter

    BEIJING, April 16 (Xinhua) -- Faltering exports put a dent in the industries of steel, machinery, textile and light industry in China as the global demand contracted because of the deepening financial crisis. Analysts said these sectors should shift focus on domestic demand.

    China's exports, a main driver for its economic growth, recorded a year-on-year 2.2 percent drop in November. It fell for the first time in seven years because of the economic downturn.  Full story

China to raise tax rebates on textile, metal exports

    BEIJING, March 25 (Xinhua) -- China will raise the tax rebate rate on some textile, iron and steel, nonferrous metal, petrochemical, electronic information and light industrial exports starting April 1.

    The decision was made at an executive meeting of the State Council, the country's Cabinet, Wednesday.

    Participants to the meeting agreed that it was necessary to raise tax rebates on some export products, so as to fully implement the country's economic stimulus package and the support plans for ten industries, details of which were released in the past two months. Full story

FM: China to continue reform of exchange rate process

    BEIJING, April 16 (Xinhua) -- China said Thursday it had taken note of a U.S. report stating that the Chinese government did not manipulate the exchange rate of the yuan.

    "We will continue reform of the renminbi exchange rate mechanism," Foreign Ministry spokeswoman Jiang Yu told a regular press conference. She was responding to a question concerning the U.S. statement.  Full story

Yuan set to play bigger global role

    BEIJING, May 22 -- The Chinese currency, the renminbi, is beginning to play a bigger role globally and that will push its value up in the long run, experts said.

    "China's yuan has appreciated by 20 percent between July 2005 and February 2009. The currency even appreciated slightly against the dollar when most other emerging markets and other currencies fell sharply against the greenback during the financial crisis," said Zhai Peng, economist, Guotai Jun'an Securities.  Full story

Special Report:  Global Financial Crisis

Editor: Deng Shasha
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