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China Announces Measures to Boost fall in Exports

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China’s Cabinet has approved measures to boost exports. This may increase tensions with Western trading partners, who are accusing Beijing of flooding their markets with steel and other goods at improperly low prices.

Beijing is struggling to reduce a glut of goods in several industries and reverse an export decline. So far this has prompted complaints by European and U.S. steelmakers and others that it is violating free-trading pledges.

In the latest measures, the Cabinet promised more bank lending, an increase in tax rebates and support for export credit.

Chinese exports contracted by 1.8 percent last month compared, with the same period last year and are down 7.6 percent so far this year.

“The foreign trade situation is complicated and grim,” said the Cabinet statement. “Promoting foreign trade to return to stability is important for economic stability and upgrading.”