Source: CCTV.com

12-25-2008 09:04

Special Report:   Global Financial Crisis

China is working on more measures to stimulate domestic demand and maintain steady growth of foreign trade. This is according to an executive meeting of the State Council on Wednesday, presided by Premier Wen Jiabao.

The meeting indicated that circulation is crucial for the growth of consumption and demand. To improve circulation in rural areas, the government will establish another group of commodity distribution centers in the coming two years. This will help facilitate the trade of agricultural products and increase income of farmers.

At the same time, the government will increase the variety of commodities available in rural markets, and expand its scheme providing subsidies for farmers to buy home appliances. It will also improve service-facilities in urban communities, promote the upgrade of durable goods, stimulate consumption during holidays and step up supervision of product quality and safety.

Another key factor for economic growth is foreign trade. The State Council meeting also discussed solutions for exporters who are witnessing difficulties due to the global financial crisis. The government will increase tax rebates for exporters of some machinery and electronic products. It will abolish restrictions on exports of some energy saving and hi-tech products. The government will also urge banks to improve services for foreign traders, especially small and medium sized firms.

It decided to allow the yuan to be used for trade between two southern provinces, Guangxi and Yunnan and the member states of the Association of Southeast Asian Nations. This follows a decision announced last week to permit greater use of the yuan for trade between Guangdong province and Hong Kong.

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Editor:Xiong