More measures will be taken to stimulate consumption and support foreign
trade, according to yesterday's executive meeting of China's State Council, or
the cabinet.
A document released after the meeting, chaired by Premier Wen Jiabao, said to
stimulate domestic consumption, efforts should be made to improve the rural
circulation network, increase the variety of commodities available in rural
markets, improve urban community service-facilities, promote upgrade of durable
goods, support development of circulation companies, stimulate holiday
consumption through exhibitions, and step up supervision over product quality
and safety.
Details of some of the seven measures to boost domestic consumption are as
follows:
-- On rural circulation network: Setting up more new stores and distribution
centers and renovating existing stores in rural regions nationwide in the next
two years.
-- On varieties of commodities and household appliances to countryside:
Increasing subsidies to encourage farmers to buy more goods; ensuring the
quality of household appliances sold with after-sales services.
-- On urban community service-facilities: Renovating and standardizing urban
food markets nationwide to ensure convenient and safer consumption.
-- On durable goods upgrading: Setting up more second-hand markets in cities;
encouraging manufacturers and retailers to conduct trade-in activities for urban
consumers.
-- On circulation companies: Encouraging acquisition and merger by larger
circulation companies to lower operating cost and cut commodity prices;
supporting development of small and medium-sized commercial trade companies by
helping them in financing.
In the fiscal year of 2009, the central government plans to increase its
financial support for the development of the rural circulation network and the
service industry.
The meeting adopted measures to relieve the difficulties of exporters and
ensure a stable growth of foreign trade.
The government plans to raise export tax rebates for high-tech and
high-value-added products. A central government fund for trade development will
be increased.
The government will adjust the forbidden and limited commodity categories of
processing trade. Standards on environment and technology will be eased. It will
also encourage the transfer of processing trade from the eastern to the central
and western regions.
To improve financing services for importers and exporters, policy banks will
be encouraged to provide more export credits. Trade between Guangdong, the
Yangtze River Delta and Hong Kong and Macao, and that between Guangxi, Yunnan
and members of the Association of Southeast Asian Nations will be settled in
Renminbiyuan on a trial basis.
China will increase the imports of products that are needed in its market,
particularly hi-tech products, critical equipment and elements, energy products
and raw materials.
The government will encourage foreign investment in hi-tech industries,
energy-saving and environmental protection industries, modern service industries
and outsourcing of services.
Measures will be taken to facilitate trade, including 24-hour customs and
inspection and quarantine services, exemption of inspection and quarantine fees
for farm products exports, and lowering of inspection fees for textile exports.
The government also plans to strengthen bilateral trade relations, properly
settle trade frictions and disputes concerning the quality and safety of export
products. Exporters will be encouraged to explore the emerging markets.