A slew of recent measures to bolster China's foreign trade will lend steam to the slowing economy and help domestic exporters climb up the value ladder, also paving the way for deepened financial reforms, experts have said.
BOOSTING FOREIGN TRADE
China will support exports and imports by taking steps like offering tax refunds for exports, reducing tariffs on popular consumer goods and opening more duty free shops at ports, according to a guideline issued last week by the State Council, the country's cabinet.
It urged governments at all levels to implement measures to prop foreign trade, saying a new round of opening up at a higher level is "a pillar to a better quality, more efficient economy."
More efforts should be laid on creating an easier business environment for foreign trade companies, creating new export business models, supporting equipment to "go global" on the back of financing services, providing better export credit insurance to help small exporters open new markets and facilitate exporting large and complete sets of equipment, it noted.
Exports are one of three economic drivers and China's fast growth in past decades to a large extent hinged on exports.
Despite the process of moving the economy away from reliance on credit expansion, investment and exports, it will take time for new growth engines to fully emerge, and supporting measures have been taken to arrest the economic downturn.
China's economic expansion slows to 7.4 percent in 2014, the lowest rate for 24 years, with the foreign trade volume denominated in U.S. dollars edging up by a mere 3.4 percent in 2014 year on year amid an anemic global recovery, sharply lower than the 7.6-percent registered in 2013.
The string of targeted measures was announced on the heels of the publicity of subpar Chinese export figures.
