China should take more steps to aid exports

BEIJING, June 16 (Reuters) - China should provide more support for exporters by increasing tax refunds and improving export credit insurance, a senior official said in remarks published on Tuesday.

Vice-Commerce Minister Fu Ziying said it was possible for China to maintain and even increase its share of global markets as long as Beijing eases exporters' financing difficulties and manages to curb protectionism.

"Although the global financial crisis is having a huge impact on China's exports, China still retains the advantages it has accumulated over the past years," Fu was quoted as saying by International Business Daily, a newspaper linked to the ministry.

China's exports and imports fell more sharply than expected in May from their year-earlier levels, marking the seventh month in a row that they have fallen.

China has already increased refunds of value added tax to exporters of various goods on seven occasions in the past year.

Beijing's economic policy goal of promoting domestic consumption did not mean neglecting exports, he said.

"If exports record further sharp, persistent declines, it will be difficult for the government's stimulus package to achieve its intended effect," Fu said.

The government is counting on its 4 trillion yuan ($585 billion) pump-priming plan to make up for the loss of export generate ans generate GDP growth of 8 percent this year.

Fu said further efforts would also be needed to facilitate Chinese firms' investment overseas. He did not elaborate. (Reporting by Aileen Wang and Alan Wheatley; Editing by Nick Macfie)