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More help for exporters on tap

CHINA'S State Council yesterday unveiled further support policies, including expanded credit insurance, tax breaks and more financial access, to help its ailing exporters.

The Cabinet also said the country would keep the yuan "basically stable" at a "reasonable and balanced" level to help exporters avoid exchange risks. The meeting was led by Premier Wen Jiabao.

The government will provide US$84 billion worth of short-term export credit insurance to trading companies to help increase exports.

Preferential policies and tax breaks will go mainly to labor-intensive and high-tech industries to protect their world market share.

Smaller companies will get more financing guarantees from financial institutions, as the government promised to allocate unspecified extra funding from the central budget.

The shrinking external demand that created the decline in China's exports will remain "the biggest difficulty" facing the economy, participants in the meeting agreed.

They also called for coordinated efforts in expanding domestic demand and stabilizing exports to reduce the impact of the global financial crisis on China's foreign trade.

China raised export rebates on some products after exports shrank on weakening overseas demand. Among the moves, the government raised the tax rebate rate for textiles five times since August.


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