China'S Exports Should Slow Down And Support Efforts Should Be Intensified.

Hongkong's Sing Tao Daily published an editorial in July 21st. Premier Wen Jiabao said yesterday (20) that reform and opening up were still at a critical stage and needed to be "hard boiled".

For Guangdong, a big export province and Hong Kong businessmen who set up factories in the locals, they are faced with difficulties at home and abroad.

The editorial is as follows:

Wen Jiabao's recent visit to Guangdong is not only a result of thirty years of reform and opening up.

President Hu Jintao recently inspected Shandong, not just watching the seaweed clearing effect of the Olympic Sailing arena.

Guangdong and Shandong are major foreign trade provinces. At the beginning of this month, the central high level above the vice premier level also inspected the coastal important foreign trade provinces and cities such as Jiangsu, Zhejiang and Shanghai.

This series of surveys shows that the central government is concerned about the possible negative impact of the mainland's macro economic climate on China's exports and the deployment of countermeasures.

According to the economic statistics published in the first half of the year, the mainland's economic growth slowed to ten point four percent, and the growth in the central and western regions accelerated, while the growth in the eastern region slowed down.

As the "three carriages" to boost economic development, investment growth is relatively stable, consumption growth has accelerated, while export growth has dropped, and the external trade surplus narrowed by US $13 billion 200 million (about HK $100 billion), which directly led to a slowdown in industrial production.

The external cause of the slowdown is the slowdown in the US and Europe, and the depreciation of the US dollar and the rise in the price of goods. This makes Chinese goods both affected by the increase in exchange rate and cost and the attractiveness of the price.

The increase in the cost of goods has led to faster growth in the export price of industrial products in the mainland, and dragged the inflation down.

At the same time, the new labor legislation and environmental protection requirements of the central government, cutting foreign capital tax concessions and reducing export tax rebates, have also increased the cost of manufacturers, and increased the difficulty of the operation of foreign-funded enterprises such as Hong Kong businessmen.

Among the thirty manufacturing enterprises in Wenzhou, Zhejiang, 20% of them are "suspended brine" or stop production, and four of them have gone bankrupt.

During the thirty years since reform and opening up in the world factory, Dongguan, Guangdong, foreign investment has been "negative growth" for the first time in the first half of this year.

During his inspection of Guangdong, Wen Jiabao also noticed that the difficulties faced by small and medium-sized enterprises were relatively large, and he proposed to increase support from credit, finance and taxation and industrial policies.

In order to retain Taiwanese businessmen, Dongguan began to exempted land use fees and set up bonded warehouses to facilitate domestic sales of products.

We are looking forward to what policies will be beneficial to export and manufacturing industries after the central authorities conduct a personal investigation.

As for labour legislation and environmental protection requirements, the concept of sustainable development is not necessarily easy to change.

The industry and commerce mainly hope that the central government can be generous with respect to export tax rebates.

For Guangdong, the central government hopes to do well in the pformation of the economic industry.

Even in support of small and medium enterprises, Wen Jiabao also proposed to support and nurture a number of "technological" SMEs with growth potential.

He referred to economic pformation and upgrading of industrial structure, and developed Guangdong into an "advanced manufacturing base" and "a modern service industry regional center".

Wen Jiabao pointed out that these directions are worth investing in the taste of Guangdong businessmen in the Pearl River Delta region. The pformation and upgrading of Guangdong must be timely and the enterprises facing the deteriorating business environment should intensify their efforts to help them overcome the current difficulties. The upcoming mainland and Hong Kong Closer Economic and trade arrangements, including Hong Kong's service industry to the north, will also set up a platform for new economic highlights in Guangdong and Hong Kong.