Official Expects Full Export Recovery in Near-Term

A senior official says that China's exports fell by 16 percent last year but will likely reach pre-crisis levels in two to three years

(Caiixn Online) China's exports may return to pre-financial crisis levels in two to three years due to high unemployment and low saving rates in developed countries, a senior official said recently.

Minister of Commerce Chen Deming made the comments at a press conference held during the 11th National People's Congress.

In 2009, China's exports fell by 16 percent while domestic consumption rose 16.9 percent, said Chen, adding that domestic consumption was a major growth driver last year. Since the onslaught of the financial crisis in 2008, China has raised the export rebate rates seven times, an action that some countries have pointed to as a source of artificial price lowering.

Nonetheless China is determined to continue the tax rebate policy into 2010 and further promote services such as export credit and export credit insurance, according to a government work report delivered by Chinese Premier Wen Jiabao to the NPC last Friday.

Chen said that China's policies are in line with World Trade Organization rules, adding that the demand stimulation package has been beneficial to global economic recovery.

(Translated by SHX)