Premier Wen Jiabao said yesterday the country 'must not loosen its grip on exports' even though trade protectionism was rising and the global financial crisis had yet to hit bottom.
In his address to the National People's Congress, Mr Wen outlined seven ways to strengthen exports, a pillar of the economy. They included increasing the foreign trade development fund to help small and medium-sized businesses export, boosting export credits and expanding services outsourcing.
'We must emphasise expanding internal demand and must not loosen our grip on exports,' he said. 'Facing a sharp contraction in external demand and the chronic emergence of global trade protectionism, we must step up our efforts at adjusting trade policies.'
Among the export-friendly policies, Mr Wen vowed to expand the size of the foreign trade development fund and help smaller enterprises enter international markets.
He said the upgrade on processing trade manufacturing would be accelerated, hinting that Beijing would liberalise a list of commodities previously deemed forbidden or subject to restrictions.
Services outsourcing will also be expanded to reduce reliance on processing trade, in which imported materials are assembled to make export products. The industry has been criticised for relying on low-cost labour, using vast amounts of energy and polluting the environment.
Mr Wen would encourage expanded imports, such as energy and raw materials, and called for a better international trade environment, pushing for a resumption of the Doha round of trade talks, and the implementation of free-trade strategies.