China Watch Blog has learnt that the situation surrounding China’s exports will become more complicated and severe in the coming months amid an increasing number of trade protectionist measures and slackening global demand, the China Daily reported, citing the Ministry of Commerce.
China will roll out policies regarding currency and tax rebates to bolster exports, Zhong Shan, deputy minister of commerce, said at a forum in Beijing, adding that it will be more arduous for the Chinese government to stabilize export growth.
According to the General Administration of Customs, China’s exports declined 0.5 percent over the year in January, the first fall in more than two years. During the first two months, Chinese shipments grew by merely 6.9 percent year-on-year.
The figures are far less than the previous year and they set a pessimistic tone for the whole year, Zhong said.
From January to February of 2011, China’s exports grew by 21.3 percent year-on-year.
According to Zhong, industrial competitiveness, global demand and the business environment are the decisive trends for the nation’s exports, and they are all “not favorable”.
China is losing its dominant competitiveness in labor costs as the nation pledges to raise minimum wages for workers to improve their livelihoods, Zhong said.