China says it would allow some enterprises...
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China says it would allow some enterprises to keep more of their foreign exchange earnings, a move which a Western business official said was likely to stimulate trade.
Li Lanqing, vice minister of foreign economic relations and trade, said companies in several sectors would be able to keep between 70% and all of their foreign exchange export earnings, the New China News Agency reported.
The Western business official said most enterprises currently may keep only between 5% and 10% of foreign exchange earnings. The rest goes to the central government to boost its hard currency reserves.
“Everything depends on what the new rules are exactly, but at first sight, this should give domestic enterprises more incentive to export,” the Western source said.
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