The Ministry Of Commerce Said That The Foreign Trade Situation Will Deteriorate Further Next Year.

The Department of Commerce of the Ministry of Commerce has been meeting recently. "This is all caused by the financial crisis". On the 20 day, an official of the Ministry of Commerce hurriedly dropped this sentence to reporters before entering the conference room.

At present, promoting the steady growth of exports and expanding domestic demand are two important tasks of the Ministry of Commerce.

According to people familiar with the matter, a few days ago, the Ministry of commerce just convened a working conference to promote steady growth of exports.

The meeting was presided over by the deputy director of Foreign Trade Department of the Ministry of Commerce. Si Baoling, the head of the China Light Industry Federation, the China Textile Industry Association and the Ministry of Commerce, attended the meeting on how to promote export stability.

On the 19 day, the Ministry of Commerce released the report on China's foreign trade situation (autumn 2008), and the report pointed out that under the worsening international economic situation next year, the state will further improve its external trade environment, including import and export management, import and export tax revenue, foreign exchange management, etc., to support the export of advantageous enterprises and products and increase imports of products that are needed at home.

At present, the fundamentals of China's economy are still superior to those of other economies. Especially after the State Council's deployment of 4 trillion investment to stimulate domestic demand, China's economic growth rate will probably be the highest in the world.

Yan Min, an associate researcher of the National Information Center, told our reporter.

"The foreign trade is facing the downside risks of the world economy", and the autumn report has confirmed that "the downward trend of the world economy is a foregone conclusion".

Fan Min, editor in chief of the Department of industry management of the State Textile Industry Bureau and editor in chief of the textile business week of the Ministry of Commerce, described the foreign trade situation of China next year with "very grim" in an interview with reporters.

According to the Ministry of Commerce's report, the total import and export volume of China's commodities will reach US $2 trillion and 600 billion in 2008, an increase of around 20%.

Compared with the 25.7% annual export growth rate in 2007, there has been a marked decline, but this may be just the beginning.

The report believes that as the US subprime crisis evolves into the global financial crisis, world economic growth will continue to slow down, and the external environment for China's foreign trade will further tighten in the coming months.

In this regard, Yan Min agrees.

She said that the decline in enterprise orders at the just concluded autumn Canton Fair has reflected the trend of continued decline in exports next year.

Under such circumstances, how to promote export stability has undoubtedly become the premier issue of the Ministry of Commerce.

The report states that the state will further improve its external trade environment next year, will further adjust policies on import and export tax and foreign exchange management, take necessary measures to support the export of advantageous enterprises and products, encourage financial institutions to increase loans to small and medium-sized export enterprises, expand direct financing channels for small and medium-sized enterprises, and increase imports of products that are needed at home.

Reporters learned that the Ministry of Commerce said that it was planning to loosen the company's advance loan financing with the safe. The adjustment is expected to abolish the collection of loans under 100 thousand US dollars.

At that time, enterprises will be able to collect foreign loans in advance to increase their liquidity.