China to Maintain Export Tax Rebates in 2010

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BEIJING, Dec. 23 – China announced on Tuesday that it would maintain its export stimulus measures such as export tax rebates in 2010.

The Ministry of Commerce stated that many problems remain and that it would be difficult for external demand to return to pre-crisis levels without continued government intervention.

“Practice has proved that the policy mix to stabilize external demand is timely and effective. It has boosted market confidence and facilitated the steady recovery of foreign trade,” the ministry said in a quarterly review of trade posted on its web site.

The announcement came after the nation posted the best foreign trade performance in a year last month, rising 9.8 percent from a year ago after 12 monthly drops.

The decline in exports narrowed to 1.2 percent in November while imports climbed 26.7 percent according to government figures.

“There were increasing uncertainties in international trade with governments around the world striving to protect domestic industries and compete for global markets as the world economic recovery would be a slow and devious process,” Zhou Xiaoyan, the director of the fair trade bureau under the MOC, said during an online interview on Monday with sate media.

The Chinese government will continue to encourage exports, which contributed to 30 percent to the Chinese economy prior to the crisis, especially the exports of indigenous brands and products using Chinese technology.

China will also work to increase imports in 2010, especially imports of high-technology goods and resources that are scarce in China, the statement said.