China should continue to implement current export rebate policy to cushion adverse impact from the gradual appreciation of RMB, Sheng Songcheng, director of the statistical department of the People's Bank of China, China's central bank.
Sheng's remarks show that the authorities are concerned about negative impact on exports from gradual RMB appreciation.
Slight RMB appreciation in a gradual way will help stabilize price level, but will also cast adverse impact on exports, Sheng said in an article released by the Financial News, a magazine sponsored by the central bank.
China should adhere to the basic export rebate policy to stabilize external demand, and the export rebate policy for high-tech products should be adopted temporarily.
Sheng also suggested rural financial institutions continue to enjoy such preferential policies as relatively low required reserve ratio, and encouraged enterprises engaging in grain imports to import more grain so as to rein in grain prices.
Moreover, China should avoid excessive investment growth, strive to enhance consumption ratio, and study the launch of environmental tax, Sheng suggested.
CITATION http://www.chinaleather.org/eng/show.php?itemid=5663
