Detailed policies needed to stabalize exports

BEIJING -- Industry analysts have called for the creation of more detailed policies to ease burdens on foreign trade enterprises after the State Council on Wednesday approved a raft of measures to stabilize trade growth.

Zhang Lei, an analyst with Minsheng Securities, said China should issue detailed rules and ensure the implementation of trade-stabilizing policies in a timely manner, including measures concerning tax rebate rates and financing costs.

The State Council on Wednesday announced a slew of measures aimed at boosting foreign trade, including speeding up the export tax rebate process for companies, lowering financing costs for small and micro-sized enterprises and increasing credit to qualified exporters.

China will also work to optimize administrative procedures concerning inspection and quarantine, the State Council said.

These measures, largely within market expectations, came as China's foreign trade has continued to falter amid the global economic downturn.

China's exports increased 2.7 percent year-on-year to $177.97 billion in August, up from 1 percent recorded in July but still a sharp drop from the 11.3 percent growth seen in June.

Li Huiyong, an analyst with Shenyin & Wanguo Securities, noted that most of the recent policies are not related to exchange rates, and he said the key to making them work lies in the specific corresponding rules.

In the January-August period, China's total foreign trade reached $2.5 trillion, an increase of 6.2 percent from last year but below the 10-percent full-year growth target set by the government for 2012.