Monday, August 27, 2012

China to take further action to stabilise export growth: Wen Jiabao

BEIJING: China will implement new measures aimed at stabilising export growth in the third quarter, Premier Wen Jiabao said while visiting the export hub of Guangdong province on Saturday.


China's exporters will continue to struggle over the next few months with the economy still facing a number of "unfavourable conditions" in the second half of the year, Wen was quoted by state television as saying.

He said the country would speed up the issuing of tax rebates and also widen the range of export insurance, especially for small-scale enterprises.

Export insurance guarantees payments for overseas sales and is designed to ease cash flow pressures on small businesses and encourage exporters to sell products to high-risk markets.

Wen said China would step up policy adjustments to support the economy as well as improve the operating environment and business confidence of enterprises.

Chinese government data last month showed July exports rose just 1 per cent from a year earlier and that new loans were at a 10-month low.

Factory output rose at its lowest pace in three years and pricing power faded.

That raised the spectre of a seventh straight quarter of slowing growth in July-September, after the second-quarter expanded 7.6 per cent from a year earlier, only just above Beijing's official 7.5 per cent target.

indiatimes.com

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