The Ministry of Finance reported that China will offer 2.5 billion Yuan ($398 million) in loan subsidies to importers for purchases of advanced technological equipment, raw materials and other components. This is the latest central government effort to use fiscal spending to lift up growth and balance trade.
The money is allocated from the central budget. Beijing has allocated a total of 9.5 billion Yuan ($1,520 million) to offer interest discounts to importers since 2008, when the specialized fund was established.
Chinese imports fell 2.6 percent in August from a year earlier and exports increased only 2.7 percent, both missing investor expectations.
Beijing has already disclosed the way to help exporters and importers which including easing access to loans and speeding up refunds on tax rebates.
Besides above plan to help importers and exporters, China would also suspend inspection and quarantine fees for all goods coming in and out of China for the rest of this year to shield exporters and importers from the global economic downturn.
China is expected to report on October that annual economic growth probably slowed for a seventh straight quarter in the July-September period to the weakest level since the depths of the global financial crisis.