China Will Strengthen Policies To Ensure Export Trade.

Foreign trade exports have always been one of the most important forces to boost China's economic growth. However, with the deepening of the international financial crisis and the sharp reduction of external demand, the support measures aimed at maintaining stable growth of foreign trade are expected to be further strengthened at the upcoming Central Economic Work Conference.

Over the past 5 years, China's foreign trade has grown at an average annual rate of 28.5%, and its share of China's gross domestic product has increased to 66.8% last year.

But this year, great changes have taken place.

In the first 10 months, the total value of imports and exports was US $2 trillion and 188 billion 670 million, an increase of 24.4% over the same period last year.

It is generally believed that the worst time for foreign trade is yet to come.

Take China's coastal processing trade and foreign trade province Jiangsu as an example. From August to October this year, the import of processing trade in Jiangsu showed a negative growth, which indicates that the latter export will fall back.

Not only small and medium-sized enterprises, but also the export orders of some larger enterprises have been significantly reduced.

At the Canton Fair, which ended last month, turnover also fell for the first time since SARS.

"A sharp slowdown in exports will seriously affect employment, and it will also affect the basic industries it links to and destroy productivity."

Zhao Yumin, director of the International Market Research Institute of the international trade and Economic Cooperation Institute of China's Ministry of Commerce, pointed out.

These serious situations in the field of foreign trade have aroused high vigilance among China's top leaders.

Wen Jiabao and other central leaders went to Zhejiang, Shanghai and Guangdong for inspection. When the CPC Central Committee Politburo conducted collective learning recently, Hu Jintao stressed that China is now facing the pressure of reducing external demand and weakening traditional competitive advantage gradually. The previous political bureau meeting put forward that we should maintain steady growth of foreign trade and optimize the structure of import and export.

Since December 1st, China has further increased the export rebate rate of some labor-intensive products, mechanical and electrical products and other more influential products, and the rate of increase has ranged from 4 to 8 percentage points.

This is the third time since August this year that the export tax rebate rate has been adjusted. The intensity of the export tax rebate rate is unprecedented, and is in sharp contrast to the export tax rebate rate of the previous reduction of such products.

It is noteworthy that, at the beginning of this month, Vice Premier Wang Qishan of the State Council convened a special forum on foreign trade work.

The last Forum on foreign trade work was held in 2001 on the occasion of slowing external demand by Zhu Rongji, premier of the State Council.

Wang Qishan stressed at the forum that measures should be taken from various aspects to make every effort to stabilize the export market.

His measures include speeding up the pformation of foreign trade growth mode, optimizing the structure of import and export, diversifying export markets, promoting enterprises' "Introduction" and "going out", and strengthening market information services.

According to the 3 executive meeting of the State Council, China will vigorously promote trade and investment facilitation, facilitate trade financing of enterprises, especially small and medium-sized enterprises, and support the development of foreign trade.

The meeting also decided to increase the proportion of loans to SMEs and optimize the export tax rebate process.

Zhao Yumin told reporters that a series of recent measures to promote foreign trade involve a wide range and great efforts, but there are still some policy space at present. There is still room for processing trade policy, and export tax rebates and other tools can also be used.

"Promoting trade pformation and upgrading is the fundamental way out for China's foreign trade, and this should also become the focus of supporting policies."

Zhao Yumin said, for example, through policies and funds to encourage enterprises to go deep into high-end marketing links, acquire or cooperate in brand management, encourage small and medium-sized enterprises to innovate in technology and open up new markets, etc., the current crisis can become a pformation opportunity for some foreign trade enterprises.

Experts believe that the impact of the deterioration of the international economic environment on China's foreign trade may be further deepened next year, but the competitiveness of China's foreign trade industry is still quite obvious. There are still many favorable conditions and positive factors to maintain steady and rapid development of foreign trade.

With the central economic work conference further clarifying the policy of supporting foreign trade next year, it is still possible for China to maintain steady growth in its foreign trade.

Yang Jing: editor in charge