Chinese govt unveils trade support

The Chinese government on Thursday announced support for stable growth of foreign trade and job creation, as businesses come under pressure to increase exports.

Optimizing the foreign trade structure -- including encouraging imports of technology and key parts, maintaining stable growth of goods trade and supporting services trade -- is the central issue of a policy document issued by China's cabinet, the State Council.

The document is a detailed version of the decision made at an executive meeting of the State Council on April 30.

"Foreign trade is not only critical to stable economic growth and job creation, but conducive to integration between the Chinese and global economies," said the State Council. Exports dropped 2.3 percent in the first four months of the year to 680 billion U.S. dollars.

Export tax rebates will be accelerated, and companies are encouraged to merge and acquire foreign brands and production lines to improve their competitiveness. They are also encouraged to set up factories overseas.

Efforts will be made to increase imports of scarce natural resources and support exports of high-tech products with high value added and high profitability.

The customs inspection list of export products will be shortened and the clearance process streamlined. Companies will be given support in responding to anti-dumping and anti-subsidy investigations.

This latest attempt to stabilize trade, economic growth and job creation comes after China's gross domestic product (GDP) growth eased pace to 7.4 percent in the first quarter.

More financial support should be given to exporters who have orders and are profitable, and use of yuan in foreign trade and investment should be increased. China will support private and smaller exporters, and encourage some exporters to become multinationals with core competitiveness through merger, acquisition and restructuring.