The Ministry Of Commerce Recommends Slowing Down The Appreciation Of The Renminbi To Prevent A Sharp Fall In Exports.

Economic slowdown "pressure" appreciation rate

According to sources, the State Council asked the Ministry of Commerce to report its foreign trade situation in the first half of this year and put forward policy proposals. In the report, the Ministry of Commerce stressed the challenges faced by China's export enterprises, suggested that the relative stability of the RMB exchange rate should be maintained, the pace of RMB appreciation should be slowed down appropriately, and the time for structural adjustment of enterprises would be provided, otherwise many enterprises would be closed down.

Recently, it was revealed that the Ministry of Commerce has formally recommended to the State Council to slow down the pace of RMB appreciation and raise the export tax rebate rate for clothing, toys and footwear so as to prevent a sharp fall in exports. It seems that the Vice Minister of Commerce Gao Hucheng said recently that the Ministry of commerce is working with other departments to conduct research on export difficult industries, and will make timely policy recommendations according to the research situation.

Han Xiushen, a researcher at the Ministry of Commerce's think-tank and Research Institute of the Ministry of Commerce, told reporters yesterday that from the current plight of foreign trade and the downward trend of domestic economic growth, it is reasonable and expected to suggest that the pace of RMB appreciation should be slowed down.

Zhang Liqun, Deputy Secretary General of the academic committee of the development research center of the State Council, who has just gone to Shandong with the leadership of the State Council, has pointed out that in view of the weakening of inflation pressure and the decline of economic growth, stabilizing economic growth and increasing support for enterprise operation should become the focus of fiscal policy and monetary policy in the coming period.

Ministry of Commerce recommends slowing RMB appreciation

China's cumulative trade surplus in the first half of this year was 99 billion 30 million US dollars, down by 11.8%. compared with the same period last year. This year, foreign trade exports showed a gradual downward trend, and exports in June increased by 17.6% compared with the same period last year, which has been below 20% of the warning line.

According to foreign news reports, official sources revealed that the State Council requested the Ministry of Commerce to report its foreign trade situation in the first half of this year and put forward policy proposals. In the report, the Ministry of Commerce stressed the challenges faced by Chinese exporters, including the appreciation of the renminbi, rising production costs, and the tightening effect of tight monetary policy. It is suggested that the relative stability of the RMB exchange rate should be maintained, and the pace of RMB appreciation should be slowed down appropriately so as to provide time for the structural adjustment of enterprises. Otherwise, many enterprises will be closed down.

For the above news, the reporter contacted the head of the Information Office of the Ministry of Commerce yesterday, and the other side did not deny the news, but declined to comment.

"The Ministry of Commerce suggests slowing down is expected."

"From the predicament faced by foreign trade and the trend of slowing domestic economic growth, it is reasonable and expected to suggest that the pace of RMB appreciation should be slowed down." Han Xiushen, a think-tank of the Ministry of Commerce and a researcher at the Ministry of Commerce, said.

Han Xiushen pointed out that in view of the huge surplus in foreign trade, we have taken more measures to curb export growth over the past two years. Including the continued appreciation of the RMB exchange rate, reducing or abolishing export tax rebates and levying export duties on some export products. But this round of resource products and labor costs increase, capital costs rise and SME financing difficulties, the pressure on exports is becoming more and more serious. This year, the subprime mortgage crisis in the United States has led to the weakening of its economy and the emergence of changes in the international market that are not conducive to China's export growth. Under the combined influence of these factors, the real growth of exports has dropped considerably this year.

"The difficulties of the future export enterprises may continue to develop, which will lead to an increase in export growth. The negative effects of economic growth should be highly valued. At this time, the Ministry of Commerce suggests that the pace of RMB appreciation should be slowed down, which should be expected.

Han Xiushen further indicated that it is difficult to draw conclusions on improving the export rebate rate of clothing, toys and footwear. The implementation of structural adjustment and industrial optimization is the short-term goal of foreign trade development. Obviously, the export tax rebate rate for products with high energy consumption and low attachment value will not be adjusted.

"Macro adjustment policy should increase support for enterprises"

Since July, a number of high-level central governments have gone to many coastal and foreign trade provinces to investigate and investigate the enterprises. The central economic situation analysis, which will be held this week, will set the tone for the second half of the year to respond to a series of complex problems.

Zhang Liqun, the deputy director general of the academic research committee of the State Council Development Research Center and the director of the first research office of the macroeconomic research department, who has just returned to Shandong with the leadership of the State Council, said that in view of the weakening of inflation pressure and the decline of economic growth, increasing the support for business operation in policy thinking should become the focus of fiscal policy and monetary policy.

Zhang Liqun said that under the situation of inflation pressure began to slow down and the rate of economic growth appeared to be callback, tight monetary policy should not be loosened on the one hand, so as to prevent a strong rebound in the scale of money and credit, and on the other hand, it is not appropriate to continue to intensify efforts. We should optimize loan structure and strengthen support for enterprises and industries so as to take account of the goal of stabilizing economic growth. At the same time, fiscal policy should play a greater role. Prudent fiscal policy should increase support for structural adjustment and improve the business environment of enterprises through measures of tax reduction and incremental support. Our reporter Long Jinguang reports from Beijing

Link

RMB exchange rate innovating for four consecutive days

On the basis of the "break even" of the first three trading days, the RMB exchange rate against the US dollar continued to rise on the 15 day. According to the latest data from China foreign exchange trading center, the central parity of RMB against the US dollar in July 15th was 6.8230, once again creating a new high since the reform.