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| Thursday, October 16, 2008 00:27:17 |
China foreign trade policy may change
Minor adjustments to foreign trade and foreign enterprise policy may be necessary, said Associate Minister of Ministry of Commerce, Fu Ziying, to Xinhua.
Under the continued growth of import, export and trade deficit, China needs to change the foreign trade policy dominated by encouraging export in order to maintain economic sustainability.
Fu pointed out that export tax reimbursement should be terminated to products of high energy consumption, high pollution and resources. Help should be given to agricultural products to increase farmers’ income.
Analysts and officials say that it is impossible to improve the trade deficit overnight. Stable adjustments, import stimulation and export structure optimization are more practical measure for the time being. Improvement on national production and resources optimization are also long-term solutions to the deficit.
Since 1985, China practices export tax reimbursement policy, increase the competitiveness of national products in international market and stimulate export by reimbursing partial or whole sum of export tax for exported products.
In order to increase technological level and additive values of export products, Ministry of Commerce decided to establish a foreign trade development fund to finance scientific research and innovation for national enterprises. Fu commented that China has to retain the principle of fair competition and selectively attract foreign investment.
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