December 24, 2008

Chinese Cabinet outlines stimulus plan

The Chinese government says it will take measures to stimulate consumption and support foreign trade, including encouraging investment.

A document distributed after a meeting of China's State Council, chaired by Premier Wen Jiabao, outlined the plan, Xinhua reported.

The paper said to stimulate domestic consumption, efforts should be made to improve the rural circulation network, increase products available in rural markets, improve urban community service facilities, promote upgrades of durable goods, support development of circulation companies, stimulate consumption in holidays and through exhibitions, and step up supervision over product quality and safety.

The news agency said in fiscal year 2009, China's central government would increase its financial support for development of the rural circulation network and the service industry.

To boost foreign trade, Beijing said it would raise export tax rebates of high-tech products and adjust the forbidden and limited commodity catalog of processing trade, among other measures.

The document also said the government would urge banks to improve services for foreign traders, increase imports of products needed, direct foreign funds to high-tech, energy-saving and modern service industries, simplify customs procedures and monitor the quality and safety of imports and exports.