Wen promises currency stability
Source: Xinhua |
October 16, 2011, Sunday
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Print Edition
Print Edition
Premier Wen Jiabao has pledged more support measures for exporters including "a basically stable exchange rate" for the yuan to stabilize trade in the world's second-largest economy amidst new external uncertainties.
Wen made the remarks during a tour of Guangzhou, the host city of the ongoing 110th China Import and Export Fair, also known as the Canton Fair, in Guangdong Province.
At a meeting with some local enterprises that rely heavily on exports, Wen was briefed by their representatives about their business performance and the latest situation concerning China's imports and exports.
According to reports by the foreign trade sector, rising labor and material costs and the appreciation of the yuan in recent years had greatly reduced profitability at these companies.
"Even though we encounter difficulties now, we should remain confident and not be overwhelmed by the hardship," Wen said after hearing the business report.
China's trade surplus fell for the second straight month in September, dropping 12.4 percent from a year earlier to US$14.51 billion due to sluggish global demand and rising costs in domestic markets, the General Administration of Customs said on Thursday.
Chang Jian, an economist at Barclays Capital, said: "The growth in exports was slower than expected. Growth will decline 10 to 15 percent in the future as global demand continues to weaken."
"Though we need to sustain economic growth by increasing domestic demand, we should not easily give up our share of the international market," Wen said, adding that equal attention should be given to exports and imports.
In order to promote the equilibrium of the country's international current account, China should increase imports and boost offshore investment rather than reduce exports or limit foreign investment in the country, Wen added.
To stabilize exports, China will continue to provide tax rebates for exports, give more credit support to enterprises engaged in foreign trade and keep the exchange rate of the yuan "basically stable," he said.
China encourages foreign companies to invest in areas of advanced manufacturing, high-tech products, modern service, new energy and environmental protection, he added.
The US Treasury Department announced on Friday that it will delay the publication of its semi-annual currency report to Congress.
The Treasury will "delay publication of the semi-annual Report to Congress on International Economic and Exchange Rate Policies of our major trading partners until later this year," it said in a statement.
This could give the Treasury a chance to assess progress following several international meetings in the coming months.
Wen made the remarks during a tour of Guangzhou, the host city of the ongoing 110th China Import and Export Fair, also known as the Canton Fair, in Guangdong Province.
At a meeting with some local enterprises that rely heavily on exports, Wen was briefed by their representatives about their business performance and the latest situation concerning China's imports and exports.
According to reports by the foreign trade sector, rising labor and material costs and the appreciation of the yuan in recent years had greatly reduced profitability at these companies.
"Even though we encounter difficulties now, we should remain confident and not be overwhelmed by the hardship," Wen said after hearing the business report.
China's trade surplus fell for the second straight month in September, dropping 12.4 percent from a year earlier to US$14.51 billion due to sluggish global demand and rising costs in domestic markets, the General Administration of Customs said on Thursday.
Chang Jian, an economist at Barclays Capital, said: "The growth in exports was slower than expected. Growth will decline 10 to 15 percent in the future as global demand continues to weaken."
"Though we need to sustain economic growth by increasing domestic demand, we should not easily give up our share of the international market," Wen said, adding that equal attention should be given to exports and imports.
In order to promote the equilibrium of the country's international current account, China should increase imports and boost offshore investment rather than reduce exports or limit foreign investment in the country, Wen added.
To stabilize exports, China will continue to provide tax rebates for exports, give more credit support to enterprises engaged in foreign trade and keep the exchange rate of the yuan "basically stable," he said.
China encourages foreign companies to invest in areas of advanced manufacturing, high-tech products, modern service, new energy and environmental protection, he added.
The US Treasury Department announced on Friday that it will delay the publication of its semi-annual currency report to Congress.
The Treasury will "delay publication of the semi-annual Report to Congress on International Economic and Exchange Rate Policies of our major trading partners until later this year," it said in a statement.
This could give the Treasury a chance to assess progress following several international meetings in the coming months.
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