China's foreign trade likely to fall in H1

Jun. 8, 2009 (China Knowledge) - China's foreign trade sector will show a decline for the first half of this year, and may not improve in the second half, said Zhong Shan, vice minister of the Ministry of Commerce (MOC), at a national meeting on export credit insurance, sources reported.

During the period from January to April, exports declined 20.5% year on year to US$337.42 billion, while imports fell 28.7% and reached US$261.99 billion. China's utilized foreign investment amounted to US$27.67 billion in the first four months, down 21% year on year.

China should promote exports of labor-intensive products and high-tech products, said Zhong, adding that China should also expand domestic demand to drive investment and healthy socio-economic development.

Zhong also urged insurers to increase coverage of export credit insurance and cut insurance premium rates to help exporters reduce risks. Meanwhile, the government will set aside US$84 billion for underwriting short-term export credit insurance and to finance equipment exports.

Earlier, the government announced a series measures to support the stable development of foreign trade. The measures include improved policies relating to export credit insurance and financing aid for foreign trade enterprises.