Commerce Minister Warns of Grim Outlook for China's Foreign Trade

By staff reporter Dong Ning

"My prediction is the China's foreign trade will remain difficult in the coming months," said Commerce Minister Chen Deming on March 10.

"Many problems in the United States financial system have yet to be exposed and financial difficulties are rising in Europe," Chen told a press conference at the ongoing Second Session of National People's Congress. "So we will see a gloomy picture in the coming months."

According to customs statistics, both of China's imports and exports continued the negative growth trend in February. The fall is faster in coastal areas than in inland, and faster for mechanical and electrical products than consumer goods of daily use.

In response to the situation, China has stepped up financial support to exporters, such as increasing tax rebates, on the premise of observing international rules. The minister noticed that the biggest problem agonizing Chinese exporters is lack of access to credit.

Mr. Chen called for global cooperation in face of contracting foreign trade worldwide, reiterating that protectionism wouldn't help the world economy nor national economies. The primary task for China at the moment is to maintain steady economic growth and to hold on to policies underpinning free trade.