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CRI News Report:China works to offset falling export's ...

China works to offset falling export's influence on the country's economy

China reports a 23.5% decline in its first half year's foreign trade , with exports falling 21.2%. Export trading, which used to shore up China's robust GDP growth, has now become a major challenge to the emerging economy. Our reporter Wang Ling has more.

Reporter: The latest report from China's National Bureau of Statistics shows the country's economy continues to suffer from sluggish demand on the international market. In the first half, shrinking "net export" dragged down the overall GDP growth-rate by 2.9 percentage points. Chief economist from Caijing Magazine, Shen Minggao, explains.

"The global financial crisis is in fact a result of the unstable pattern of world economic growth. This crisis has proven China's previous growth pattern is unsustainable. I don't think China would be able to maintain a two-digit growth rate if its economic growth still heavily relies on overseas demand and export trading. "

The International Monetary Fund has predicted a falling trend of GDP growth in the world's major economies. The US is expected to suffer a 1.6% decline in GDP this year, EU, a drop of 2% and Japan 4%.

As China's key trading partners, their gloomy economic outlook will inevitably overcast the future of Chinese exporters and the its GDP growth.

Economic expert from China's Ministry of Commerce, Mei Xinyu, says the nation is well aware of the difficult situation. But he adds China has been working steadily to reduce its exports' contribution to the country's GDP growth.

"We cannot expect China's foreign trade to regain massive growth in a short time. We have never sought an unreasonably high surplus rate, which doesn't help the whole economy. We have been working for proper share of foreign trade, especially export trading. "

Shen Minggao from the Caijing Magazine echoes Mei's opinion, adding that stimulation of domestic demand will help make up for the loss of the international market.

"We have seen the government working toward that direction. Apart from fostering the social security system, I think some short-term policy will also help encourage domestic consumption, like tax-cut, government subsidy to the low-income groups and issuance of vouchers."

Wang Ling CRI news.

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