New measures to fight exports slowdown in Guangdong

Exports from Guangdong Province make up a third of China's total volume. But with demand drying up, exporters are coming under severe pressure. Local authorities are promising a whole string of measures over the next few years to boost domestic demand and restructure the economy.

Growth in Guangdong's Gross Domestic Product is highly dependent on foreign trade. But with GDP growth falling 4.3 percent for the first three quarters, the provincial governor is pledging more measures to aid exporters. These include boosting domestic demand, improving social welfare and facilitating the development of a modern industrial system.

Huang Huahua , governor of Guangdong Province, said, We will invest in large infrastructure projects and upgrade industries. A new Ten Projects program will be initiated in Guangdong, which will involve a 2.3-trillion-yuan investment over the next five years. During the period, an adjustment system for minimum wages will be set up to boost domestic spending in urban areas, while more public goods and service will be supplied in the countryside to stimulate the consumption there. At the same time, more goods will be exported to new markets like ASEAN countries, Africa and Russia.

Huang says 40 billion yuan of fiscal funds will be spent annually on rural infrastructure projects and free training in the countryside over the next five years. And he says 1 billion yuan of government funds will be set aside every year to develop a modern service and manufacture industry over the next four years.