News & Reports News Year 2012 October 2012 More subsidies to help trade

More subsidies to help trade

CHINA will offer 2.5 billion yuan (US$397 million) this year, up 25 percent from a year earlier, as subsidies to pay the interest on loans importers borrowed to purchase selected types of goods, the Ministry of Finance said yesterday.

Since 2008, China has offered a total of 9.5 billion yuan in subsidies to encourage purchases of advanced equipment, raw materials and key components. This year's increased subsidy is among the latest measures to boost imports and exports.

"Every 1 yuan subsidy we offer has increased the import value by US$12," the ministry said. "This has effectively driven technology innovation, assist industrial upgrade and ease the strains on domestic resources."

China has also recently facilitated foreign exchange procedures, eased traders' access to loans, and sped up tax rebates to help them.

China's imports in August fell on an annual basis for the first time in seven months on weak domestic demand, according to latest data.