China exports and imports slow down IBUonline is a B2B foreign trade platform which helped China suppliers

and international buyers to complete foreign trade. IBU also concerned about China policies and measures on trade. China will increase commodity imports with a rise in the import discount interest fund while diversifying trade. Meanwhile, the government will try to achieve a basic equilibrium in the balance of international payments while keeping the renminbi exchange ra te basically stable at a reasonable and balanced level, the news release said. In June, Chinas exports surprisingly declined by 3.1 percent year -on-year, the first monthly decrease since January 2012 and the biggest decline since the 2009 recession. Imports dropped 0.7 percent year-on-year in June, compared with a 0.3 percent fall in May, according to the General Administration of Customs. Exports and imports have gradually been slowing down in the first half of the year, though foreign trade expanded 8.6 percent year-on-year with exports rising 10.4 percent and imports increasing 6.7 percent, in line with the governments outline of 8 percent trade growth for the year. Its necessary for China to put forward trade support measures so that foreign trade will maintain moderate growth. Otherwise, declining trade will bring a negative momentum to the countrys economic growth, said Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a think tank of the Ministry of Commerce. Commerce ministry spokesman Shen Danyang said at a news briefing on July 17 that Chinas outlook for exports in the second half is not optimistic, and we have to overcome many difficulties to reach this years trade growth target, though that does not mean we will miss it. Wang Jun, a senior researcher at the China Center for International Economic Exchanges, said that the renminbi should be moderately depreciated in the second half of this year, which will enhance export competitiveness as well as ease pressure on monetary policy. Huo added that the government should step away from pressing small and medium-sized enterprises, the major force of Chinas trade enterprises, while helping them explore the international market.

The State Council also decided to temporarily exempt companies with monthly sales of less than 20,000 yuan from value-added and business taxes, starting Aug 1. The move will benefit more than 6 million small businesses and affect jobs and income for tens of millions of people. IBU still takes a positive view on trade since China government is rolling out measures to stimulate trade business.