Exports Still Vital to China's Growth

Exports should not be sidelined as the nation rebalances its economy to encourage consumption, top government officials and policy advisors said.

China's exports have seen strong growth for many years, contributing to a large part of the country's stable economic progress. However, the global financial crisis, which has hit the country hard since mid-2008, as well as growing trade disputes, have prompted policymakers and advisors alike to rethink the country's export-related policies.

 There have been growing voices among scholars that the country should stop supporting exports while shifting it focus to domestic consumption.

Zhang Zhigang, a member of the Chinese People's Political Consultative Conference (CPPCC), however, said that if the country wants to encourage consumption, exports are "vital".

"Growing exports can create more jobs and provide the impetus for domestic consumption," Zhang, also chief economist of the Center for International Economic Exchanges, said during the ongoing National People's Congress and CPPCC sessions on Sunday.

Minister of Commerce Chen Deming on Saturday said that export-related sectors provide at least 90 million jobs - about 7 percent of the national population - and therefore affect consumption.

"How can we expect them to spend and consume more if they lose their jobs or have their salaries cut because of grim exports?" asked Chen.

China's exports, which experienced robust growth of more than 25 percent before 2008, dropped by 16 percent last year. Economists believe the growth will remain at 15 percent this year.

"China should strike a balance between stabilizing exports and spurring domestic consumption, to optimize its economic structure," said Zhang.