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88cqdn11h90
Posted: Wed 7:15, 23 Feb 2011
Post subject: China to Maintain Trade Stimulus After Incentives
China on Tuesday announced it will maintain its export stimulus measures to tackle more complicated trade conditions next year after their success in offsetting the effects of the global economic crisis.
"Practice has proven that the policy mix to stabilize external demand is timely and effective. It has boosted market confidence and facilitated the steady recovery of foreign trade,
outsourcing software development
," the Ministry of Commerce (MOC) said in a quarterly review of trade published on its website.
The announcement came after the nation posted the best foreign trade performance in a year last month,
Data convention
, rising 9.8 percent from a year ago after 12 monthly drops.
The decline in exports narrowed to 1.2 percent in November while imports climbed 26.7 percent.
The government would maintain the "continuity" and "stability" of the policy as overseas demand was unlikely to rebound to pre-crisis level, the report said.
It warned against "blind optimism" and said a daunting task remained.
To support exports, which contributed over 30 percent to the Chinese economy before the crisis happened, the government raised the tax rebate for exporters seven times,
Financial service outsourcing
, and cut premium expenses to double the export credit insurance coverage.
The government also introduced yuan settlement in five cities in a pilot program to help exporters avoid the risks of exchange rate fluctuations.
The MOC report said the incentives should be more "flexible" and "targeted" to cope with new changes.
The government would encourage the exports of indigenous brands and products using Chinese technology. Service trade and outsourcing should also be expanded.
To balance trade,
quality assurance service
, it would step up imports of technology equipment, key machinery parts and the strategic resources, the report said.
The total value of exports and imports was $1.96 trillion in the first 11 months,
Data convention outsourcing
, down 17.5 percent year on year.
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