This is a few days old but shows all the talk about domestic demand isn’t taking anything away from the desire to export:
China to Take Steps to Boost Exports; Will Keep Currency Stable
May 27 (Bloomberg) — China’s State Council, or Cabinet, said the government will take steps to boost exports while keeping the country’s currency “basically stable,†the state television reported today.
Falling exports are the biggest challenge for the world’s third-largest economy, the council said.
China introduced a 4 trillion-yuan ($586 billion) stimulus package last year as exports slumped and economic growth slowed. Maintaining external demand can create favorable conditions for employment, businesses and domestic consumption, China Central Television said today, citing a council meeting headed by Premier Wen Jiabao.
The nation will keep its currency “basically stable at a reasonable and balanced level,†the council said, without elaborating.
China will take all measures to stabilize overseas demand as shrinking exports are the nation’s biggest challenge, “currently and for some period of time in the future,†the council said.
The government will focus on exports involving intensive labor and advanced technology, according to the report.
The government will arrange $84 billion in short-term export credit insurance for 2009, the council said. The coverage of export credit insurance will also be expanded, it said.
China will allocate additional funds to support exporter guarantees, according to the report. About $10 billion will be set aside as credit for the export industry in 2009, the state television said, without elaborating.
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