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    The Ministry Of Commerce Will Make Policy Recommendations In Time For Slowing Export Growth.

    2008/7/18 16:52:00 31

    The Ministry Of Commerce Will Make Policy Recommendations In Time For Slowing Export Growth.

    In response to the slowdown in export growth in the first half of this year, the Ministry of commerce is conducting an investigation and will make policy recommendations in due course.

    Gao Hucheng, Vice Minister of Commerce, said so to the media at the fourth China Northeast Asia Investment and Trade Fair press conference yesterday.

    Gao Hucheng said that due to changes in the international market, the appreciation of the renminbi and the rise in costs, some industries, especially textiles and clothing industries, reflected some operational difficulties in the first half of this year.

    According to the information released last week by the General Administration of customs, the cumulative trade surplus in the first half of this year was 99 billion 30 million US dollars, down 11.8% from the same period last year, and a net decrease of US $13 billion 210 million.

    The main reason for the decrease is the relative slowdown in export growth and the relative increase in import growth.

    According to the data released by the General Administration of Customs yesterday, 1~6 yuan was collected by the customs and Excise Department in January of this year, accounting for 489 billion 590 million yuan, accounting for 128 billion 400 million yuan more than the same period last year, an increase of 35.6%.

    Customs believes that the main reason for the increase in tax revenue is the substantial increase in imports.

    In the first 6 months, China's imports amounted to US $567 billion 570 million, an increase of 30.6%. As a major source of customs revenue, the general trade import was 290 billion 440 million US dollars, an increase of 48.7%.

    Xinhua news agency also reported yesterday that Guangdong's industrial province has lost more than 26% of its industrial enterprises, due to factors such as rising operating costs.

    In 1~5 months, the total profit of Industrial Enterprises above Designated Size in Guangdong increased by 44.8 percentage points year-on-year.

    At the beginning of this month, commerce minister Chen Deming traveled to Zhejiang, Wenzhou and other places to investigate.

    In the face of the current situation, overseas media reported yesterday that the Ministry of Commerce of China 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.

    This newspaper did not receive any response from official channels, but an expert from the Ministry of Commerce said: "what policy is to be promulgated now is not easy to say. From now on, the data in the first half of the year are not that serious."

    Recently, some experts also said that in view of the foreign trade situation in the first half of the year, the views of all sides were not necessarily unified. It is necessary to solicit opinions and take time for export tax rebates. Therefore, it is unlikely that new policies will be introduced in the near future.

    A report released by international investment bank Merrill Lynch last week pointed out that the slowdown in China's exports in the first half was a fact, but it can neither be overlooked nor exaggerated.

    Due to China's new holiday system, the newly released foreign trade data is hard to explain, but slowing export data can help policymakers to put forward some measures to support exports.

    The above experts believe that the export in the first half of the year has not declined significantly, but only relative to the slow down last year. It can not be said that the current situation is very grim, and there is no need to adjust the policy too much.

    He also said that changing the mode of foreign trade growth and adjusting the structure is the policy direction formulated before. Some enterprises' closure is also an objective and inevitable event. However, the policy may ease this situation in the future and play a role in improving profits.

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