Ministry targets 8-percent growth in foreign trade(2)

The sluggish world economy reduced demand for Chinese exports while weak domestic demand accounted for shrinking imports along with the declining prices of imports.

"The 8-percent target for foreign trade growth can be achieved but with hard work as the country is already the world's biggest exporter and is losing its advantage of cheap labor while industrial upgrading demands improvement in workers' productivity and skills," said Li Xunlei, deputy CEO and chief economist of Haitong Securities in Shanghai.

Zhang Xiaoji, director-general of the Foreign Economic Relations Department at the Development Research Center of the State Council, said that foreign trade in 2013 will outperform this year's figures as domestic demand keeps growing and the quantitative easing policies in developed economies will increase demand for Chinese exports.

"But the government should draft a long-term strategy to improve foreign trade, including credit and financing support to increase exports to emerging markets and facilitate imports through cutting import duties and shortening the clearance period," Zhang said.

The ministry will stabilize exports through extending tax rebates and expanding export insurance. Exporters are encouraged to develop new competitive edges through building brands, research centers and international sales networks. Imports of energy and resource products, advanced equipment, key parts and consumption goods will be expanded to balance foreign trade, according to Chen.

Domestic demand

"While external demand is not encouraging, we will put more effort into expanding domestic demand, especially consumption, to propel economic growth in 2013," Yao said.

He added that consumption contributed 55 percent to China's economic growth in 2012.

"More effort will be given to modernize supply chains and develop new hot products as the subsidy to home appliance sales in rural areas will end in January," Yao said.

However, Li said that it may take a long time to boost domestic consumption, which requires the government to increase incomes and restructure government revenue and expenditure.