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Zhao Huaiyong

I. Further optimizing policies for encouraging export

We should take full advantage of the central government’s financial discount policy on bank loans resulted from delayed payment of tax rebate to relieve enterprises’ capital shortage burden. It is necessary to enhance support to small and medium-sized enterprises’ development of international market, conduct moderate adjustment and control on the export of resource-related products and improve the export products’ structure in line with optimizing policies for promoting export.

II. Continue to utilize FDI to boost the growth of foreign trade

The domestic investment environment should be further improved. Foreign direct investment and international industrial transfer should be well utilized to boost foreign trade.

III. Strengthen the import adjustment and control on important commodities

As to important raw materials, advanced technologies and equipment which will not impact domestic economy but could meet the need of the domestic market, we should take advantage of international market resources and moderately enlarge import to meet the requirement for the development of national economy.

IV. Keep a close watch on the impact of China’s export by the exchange rate of USD

In 2003, USD depreciation facilitated further improvement of China’s trade condition and increased China’s foreign trade and export to a certain degree. If the USD were on recovery, it would exert influence on China’s foreign trade growth. Therefore, we must keep a close watch on the performance of USD exchange rate and adopt effective countermeasures.

V. Further rectify and standardize foreign trade order

Because of the difference of production cost between different regions and sectors, unregulated enterprise behaviors and comparative concentration of export market, poor export order and irrational price competition are frequently seen. We must adopt effective measures to rectify and standardize foreign trade and operation order.

VI. Properly handle the trade frictions with related countries

We should take advantage of China’s influence on global economy, especially on developing countries and neighboring countries and push forward the negotiation process of the global trade liberalization. Efforts should be made to strengthen the effort for handling frictions in foreign trade and to create a favorable environment for export through actively promoting friendly relations with trading partners.

March 2004

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