Guangdong has earmarked 1 billion yuan to support exports of mechanical and electrical products as well as high-tech products, China Economic Times reported on Wednesday.

The specially allocated fund is part of an action plan issued by Guangdong in a bid to tackle the global financial crisis and maintain the foreign trade sector's healthy growth.

At the 105th China Import and Export Fair, known as the Canton Fair, mechanical and electrical products attracted deals worth US$11.26 billion, down 19.5 percent from the previous fair. The decline rate surpassed that of the light industry and the textile and garment industry but remained a major force at the fair.

According to authorities, declining demand in the international market and high pricing of mechanical and electrical products jointly took their toll on exports.

To help enterprises tackle the ongoing slowdown, Guangdong will take measures to further ease their economic burden, according to the plan.

The province also encourages financial institutions to carry out credit services to facilitate imports and exports, and expand loan services to small- and medium-sized exporters.

Guangdong will further implement strategic cooperation agreements it has signed with some financial institutions, and make good use of the US$40 billion in trade financing and long-term loans, according to the plan.

(chinadaily.com.cn May 15, 2009)