CHINA will cut some import taxes and liberalize yuan trading as part of broad efforts to support its trade sector, the Cabinet said Friday as the economy struggles to gain momentum.

    Hurt by anemic foreign and domestic demand, China’s imports in June fell for the eighth consecutive month and exports rose for the first time in four months, further dragging on an already stuttering economy.

    China will widen two-way fluctuation in the yuan exchange rate and study the introduction of products to help firms mitigate foreign exchange risks, the State Council said without elaborating in a statement on its website.

    The recent appreciation of the yuan has lowered the competitiveness of Chinese exporters, who are already struggling with tepid external demand.

    Import taxes on some daily necessities will also be cut as part of a pilot program while cheap loans will be provided to more importers, it said.

    The government will also speed up the process of paying export rebates and encourage banks to expand credit support for high-performing firms to venture abroad, the Cabinet added.

    The Cabinet said last week that China planned to give more of its importers subsidized loans to help support the trade sector.

    China’s yuan — which tracks the dollar — has hit new highs this year against various currencies, including the euro, on the back of a stronger U.S. currency.

    China’s total foreign trade dropped 6.9 percent year on year to 11.53 trillion yuan (US$1.89 trillion) in the first six months of 2015, slipping further from a 6 percent decline in the first quarter, according to the General Administration of Customs.

    (SD-Agencies)