China will implement measures to help exporters in the face of obstacles

December 23, 2021

FILE PHOTO: Containers at Yangshan Deepwater Port in Shanghai, China, October 19, 2020. REUTERS / Aly Song

BEIJING, Dec 23 (Reuters) – China will roll out more measures to assist exporters and importers at a time when foreign trade faces growing uncertainty, the official Xinhua news agency reported on Thursday, citing a meeting of the Council of State, or cabinet, chaired by Prime Minister Li Keqiang.

China’s surprising trade results this year have provided an essential buffer against the slowdown in the economy, but analysts expect exports to come under heavy pressure in the coming months as the COVID-19 pandemic wears off. remitting. Demand for Chinese goods is expected to decline as global restrictions ease and service spending rises.

Authorities will intensify support to the commercial sector, including the application of previously mentioned tax and fee cuts and acceleration of export tax cuts, the State Council said. Prime Minister Li Keqiang said in November that China is studying a new combination of tax and fee cuts to help small businesses.

The yuan exchange rate will remain basically stable and banks are encouraged to conduct forward market operations to help exporters better cope with the risks of currency fluctuations, he added.

Despite the positive figures, Chinese exporters are facing lower profit margins due to the appreciation of the Chinese currency, higher raw material prices and higher logistics costs.

The government will also take measures to ease tension in the international logistics market, as it will crack down on illegal rates and excessive price increases, he added.

(Reporting by Stella Qiu, Cheng Leng and Ryan Woo; Editing by Clarence Fernandez and Ana Nicolaci da Costa; Translation by Flora Gómez)