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by Staff Writers Beijing (AFP) Feb 9, 2012 China's commerce minister said Thursday that exports were expected to have fallen in January, as Europe's sovereign debt crisis and weakness in the United States impact the Asian powerhouse. Chen Deming also pointed out that the export-dependent country's foreign trade growth had slowed down in the second half of 2011, but said the government was taking measures to help businesses overcome the situation. "Exports in January this year cannot make us optimistic and are expected to have negative growth year-on-year due to the Chinese New Year and other factors," he said in comments published on the commerce ministry website. "Chinese trading companies, particularly small and micro businesses, have come under growing pressure," he added -- a day ahead of the publication of official trade figures. Analysts have expressed concern that the world's second-largest economy may be heading for a hard landing, although manufacturing activity improved last month despite weaker demand for exports. Still, experts have warned that slowing export growth could spell trouble for China's economy later this year, and say a trade slowdown may force the government to enact monetary loosening policies. Already in December, China moved to ease credit by trimming bank reserves for the first time in three years to help boost growth, and analysts expect further cuts in reserve requirements this year. Chen said the government planned to adopt a number of measures to help businesses overcome their current difficulties. He said China's export and import policies would remain stable. "Should there be any fine-tuning, it will be supportive rather than discouraging," he said, echoing comments made by Premier Wen Jiabao at the weekend. Chen added authorities would also take measures to ease the tax burden on trading companies and give them more financial support. China's economy grew 9.2 percent last year, well down from 10.4 percent growth in 2010, and most forecasts put this year's expansion at between 8.0 percent and 8.5 percent.
Global Trade News
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