China to announce measures to help the export sector7 September, 2012, 14:57. Posted by Zarathustra
Chinese government may announce measures to help the export sector according to Economic Information.
According to the report, new measures may include increasing tax rebates on certain exports (as mentioned earlier by Bloomberg), as well as other measures related to quality inspection, credit, insurance, and other aspects. Beyond that, there is nothing specific about what the government will do to help. The objective for the measures will focus on reducing pressure on companies within the export sector. The measures may be announced within this month according to the report.
However, one has to note that the fundamental problem with weak exports is not under the control of China. Namely, external demand is weak as the Euro crisis dragged on. The key to restore external demand will have nothing much to do with domestic policy, we believe.